Australian Public Service Strategic workforce analysis and

Australian Public Service

Strategic workforce analysis and reporting guide

Contact and Acknowledgement Information

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mailto:[email protected]

Australian Public Service Commission

APS Strategic Workforce Analysis and Reporting Guide



Contents

Strategic workforce analysis and reporting explained ..................................................................................... 3

The basis for undertaking strategic workforce analysis and reporting ................................................... 3

Undertaking effective strategic workforce analysis and reporting ............................................................ 3

Identifying and understanding workforce risks ................................................................................................... 4

Monitoring workforce data that is relevant to business delivery .......................................................... 4

Analysing workforce data to identify any workforce issues that could pose risk to the

delivery of business outcomes and outputs ...................................................................................................... 8

Consulting the business to assess potential impact of workforce issues on business delivery

................................................................................................................................................................................................... 9

Reporting to key business stakeholders on the workforce and any associated workforce

risks, to inform organisational decision making towards mitigating these risks ....................... 11

Managing workforce risks............................................................................................................................................. 14

Identifying strategy and initiative options to address workforce risks ........................................... 15

Setting aspirational targets ..................................................................................................................................... 15

Benchmarking ................................................................................................................................................................ 15

Measuring, evaluating and adjusting.................................................................................................................. 16

Appendix A: Common workforce metrics ............................................................................................................. 17

Appendix B: Developing SMART goals (in the context of strategic workforce reporting) .......... 39

Appendix C: Acknowledgement of the contribution of agencies and departments ........................ 41


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Glossary

Term Meaning

(within the context of the APS Strategic Workforce Analysis and Reporting

Guide)

Aspirational target Target set within the context of an organisation (in isolation from other

organisations) that indicates the desired state of the workforce that will

enable it to effectively deliver its business outcomes and outputs.

Benchmarking Comparison of workforce metrics with similar organisations, to gauge the

organisation’s performance within a broader context.

Critical job role Job roles which are key (or may become key to the functions of the

organisation), are hard to fill, impact on the organisation’s business outcomes

if left vacant, require a long time to develop the required skills, have a large

number of staff (critical mass), or require niche or specialised skills.

Forecasting Estimation of what the workforce will look like at future time points, based on

consideration of past trends and, taking a more complex approach, the

impact on the workforce of external factors such as labour market forces.

Job family See ‘Occupational grouping’.

Lag indicator Workforce metric that provides information about the past.

Lead indicator Workforce metric that informs future activities.

Occupational grouping A grouping of jobs that have similar skill and capability requirements.

Strategic workforce analysis Examination and interpretation of workforce data, within the context of

relevant internal and external environmental factors, to identify workforce

risks

Strategic workforce planning Identification of high-level trends and developments that will affect the

availability of the workforce required to deliver organisational outcomes, and

actionable strategies to mitigate these risks.

Strategic workforce planning usually focuses on a three to five-year time

horizon, with many organisations focusing on a four-year time horizon aligned

to Portfolio Budget Statements.

Strategic workforce reporting Communication of the outcomes of workforce analysis to key stakeholders in

a targeted way, to provide evidence to inform decision making towards

mitigating workforce risks.

Trend analysis See ‘Forecasting’.

Workforce gap Where the workforce available differs from the workforce required.

Workforce metric A quantifiable measure of workforce activity or an aspect of its profile, and its

possible implications for organisational performance.

Workforce risk Any workforce issue that could pose risk to delivery of business outcomes

and outputs.

Workforce risks arise where is a misalignment between the organisation’s

existing workforce and the workforce required to deliver its objectives.

Workforce trend The pattern established by comparing the measurements of a workforce

metric over time.


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Strategic workforce analysis and reporting explained

Strategic workforce analysis is how you examine and interpret workforce data, within the context of

relevant internal and external environmental factors, to identify workforce risks. Ideally, this will have

been undertaken as a key component of mature strategic workforce planning. However, not all

organisations have progressed workforce planning and those who have may identify emerging issues

or issues not previously identified.

Strategic workforce analysis also provides evidence to confirm or negate existing assumptions about

the workforce that are used to inform or justify organisational decision making.

Strategic workforce reporting is how you communicate the outcomes of workforce analysis to key

stakeholders in the organisation in a targeted way, to provide evidence that is meaningful to them and

informs their decision making. It is reporting in a way that can be readily understood by key

stakeholders who may not be familiar with the language commonly associated with workforce data. It

is reporting with a purpose, and not reporting for the sake of reporting.

Effective, targeted strategic workforce reporting enables the appropriate workforce strategies to be

implemented, or existing strategies to be adjusted (or ceased) to ensure the required workforce is

achieved and sustained and workforce risks mitigated. Organisations with mature workforce planning

in place will ideally implement and adjust strategies as part of that process.

For strategic workforce reporting to be effective, it must be based on the outcomes of effective

workforce analysis. For strategic workforce analysis to be effective, it must be supported by reporting

that effectively communicates the outcomes to stakeholders.

The basis for undertaking strategic workforce analysis and reporting

As an organisation’s workforce is one of its largest assets and investments, there is a business

imperative to understand, manage and plan for it properly. Strategic workforce analysis and reporting

provides information that builds understanding, and supports effective management and planning now

and in the future. It also provides a means of measuring the extent to which workforce management

and planning (and associated strategies and initiatives) are mitigating the risks to achieving the

workforce required to deliver business outcomes.

By establishing a shared language that links workforce metrics to business outcomes, strategic

workforce analysis and reporting also provides a platform for engaging more effectively with your

Executive and working in partnership with business.

Undertaking effective strategic workforce analysis and reporting

Effective strategic workforce analysis and reporting can be achieved by working in partnership with

key business stakeholders, and the areas responsible for strategic financial and workforce planning (if

these are separate functions). This ensures the information provided is relevant to the delivery of

business outcomes and supports strategic financial and workforce planning. It includes agreement on

what metrics are measured, why they are measured, how they are measured, how often, by whom, and

to what standard.


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There are two key considerations when undertaking strategic workforce analysis and reporting:

• identifying and understanding workforce risks to business delivery, and

• managing these risks to mitigate potential impact.

Many organisations have unique workforce characteristics and requirements, varying levels of

progression of strategic workforce analysis and reporting, and different approaches to strategic

workforce planning. An organisation’s approach, therefore, needs to be tailored accordingly to meet

the reality of its situation and maturity of its planning.

Identifying and understanding workforce risks

A workforce risk is any workforce issue that could pose risk to delivery of business outcomes and

outputs. They arise where is a misalignment between the organisation’s existing workforce and the

workforce required to deliver its objectives.

Workforce risks can arise from issues such as critical skills shortages, an increasing number of staff

exits, or significant workforce retirement intentions. However, such issues are only workforce risks in

so far as they have a potential impact on the organisation’s business delivery.

A key consideration of strategic workforce analysis and reporting is identifying and understanding

workforce risks. This involves a number of considerations, such as:

• Monitoring workforce data that is relevant to business delivery,

• Analysing workforce data to identify any workforce related issues that could pose risk to the

delivery of business outcomes and outputs,

• Consulting the business to assess potential impact of workforce issues on business delivery, and

• Reporting to key business stakeholders on the workforce and any associated workforce risks, to

inform organisational decision making towards mitigating these risks.

If your organisation has mature workforce planning in place, workforce risks should have been

identified as part of that process, and strategic workforce analysis and reporting should complement

these. However, ongoing strategic workforce analysis will enable you to identify emerging issues as

well as issues not previously identified.

Monitoring workforce data that is relevant to business delivery

Regular and consistent monitoring of relevant workforce data enables you to identify emerging

workforce issues. If these are assessed to be workforce risks, proactive mitigation can be initiated

before the full potential impact of the risks are realised. It also enables you to assess the impact of

strategies implemented through workforce management and planning.

Regular and consistent monitoring also aids the understanding of the current workforce for managers

and planners. It provides a firmer basis for workforce planning discussions, to better understand the

current demand and supply dynamics impacting the future workforce, and the drivers that may be

causing workforce gaps.


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Diagram 1 below highlights some examples of the data sources you might consider utilising to obtain

workforce data.

Diagram 1. Examples of workforce data sources

A reliable HRMIS is the ideal source of workforce data. However, if your organisation’s HRMIS has

limited functionality, you may need to use alternative sources while considering how (and if) to

address these issues.

The sources highlighted above provide a broad range of data and you will need to consult your key

business stakeholders to determine what is useful and relevant for your organisation.

Business stakeholders will also have an intuitive sense of the potential workforce issues and risks

based on their experience, and these can be tested with the evidence produced through the regular

monitoring of workforce data.

Benchmarking can also assist with testing assumptions. For example, increasing the representation of

women in the workforce has been a key concern for the ICT industry. Therefore, an organisation with

a lower proportion of women than men might consider this a workforce risk. However, industry

benchmarking may reveal it to be higher than the industry average and investing in strategies to

increase the representation of women may not be effective or possible.

Workforce metrics

In business, a metric is used to gauge some quantifiable component of an organisation’s performance,

such as return on investment, or revenue.

•Human Resource Management Information System (HRMIS)

•Performance Management System

•Financial system

•APSEDii

• Time keeping/Flex sheet /Attendance systems

IT Systems

•Exit Survey

•New Starter Survey

•Staff Pulse Surveys

•Employee CensusSurveys

•Strategic Workforce Plans

•Environmental Scans of the labour market

•Corporate Plans (Strategic Plans and Business Plans)Documents


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In strategic workforce analysis and reporting, a metric is used to gauge some quantifiable measure of

workforce activity or an aspect of its profile, and the possible implications for organisational

performance.

To be effective, metrics should be meaningful, measurable, and relevant. They should be agreed to

and consistently used across the organisation. When determining which workforce metrics to

measure, you might consider the following points:

• Purpose – Determine, in consultation with your key business stakeholders, what you want to know

about the workforce, and which metrics will be most useful in providing this knowledge. For

example, you might measure tenure by examining the level of corporate knowledge.

• Audience – Identify the key stakeholders who will use the data to inform their decision making,

what information they have requested, what they believe their workforce issues are, and which

workforce metrics are most influential to their decision making.

• Data source – Determine whether there is an existing data source for each of the selected metrics,

or whether new data will need to be captured in the first instance.

• Data integrity1 – Ascertain the strengths and weaknesses in the data. These will determine what

metrics you are able to measure confidently, and to what extent you can draw valid conclusions

from them. It will also assist in identifying steps to improve the quality of the data.2

• Definitions –Workforce metrics can be defined and calculated in various ways. Therefore, it is

useful to gain agreement from your key business stakeholders (in keeping with APS reporting

requirements) with a view to maintaining them consistently over time. This ensures a common

understanding, and allows comparative analysis to be undertaken, which in turn assists with trend

analysis and forecasting. It also ensures that workforce issues are genuine and not due to

discrepancies in the data.

Example

Full-time equivalent (FTE) data can be misunderstood due to variations in the way it is defined and

calculated3. From the perspective of Total FTE4 or Average Staffing Level (ASL)5, it will not include

staff on leave without pay, and is effectively a measure of workforce affordability. If based on data in the Human Resource Management Information System (HRMIS), it may include staff on leave without

pay, and is effectively a measure of workforce cost and/or maximum potential workforce capacity.

1 When assessing the quality of the data, the ABS Data Quality Framework may be a useful resource, it can be found at the following link: http://www.nss.gov.au/dataquality/resources.jsp.

2 Adapted from the definition in a Guide to People Metrics 2010, The State of the Services Authority, 3 Treasury Place, Melbourne.

3 Refer to Appendix A for a definition of FTE (Full time equivalent) as referred to throughout this document.

4 Refer to Appendix A for a definition of Total FTE as referred to throughout this document.

5 Refer to Appendix A for a definition of Average Staffing Level (ASL) as referred to throughout this document.


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Workforce metrics can be grouped into common themes. Some examples of workforce metrics

commonly monitored by organisations are provided in Table 1 below. Organisations might consider

starting with a few basic metrics, and expanding and refining these over time.

Table 1. Examples of commonly monitored workforce metrics

Workforce metrics commonly measured and monitored over time (by workforce theme)

Workforce

availability

Workforce profile Workforce

mobility

Workforce

capability

Workforce

intentions and

satisfaction

Full-time equivalent

(FTE)

Location Recruitment Performance

management

Employee

engagement

Headcount (HC) Occupational

grouping / Job

family

Secondments Education and

development

Intentions

Employment type

(ongoing, non-

ongoing, contract)

Classification level Transfers Qualifications

Employment status

(full-time, part-time)

Age Resignations Skills and

capabilities

Absence

(planned,

unplanned)

Gender Retirements Learning and

development

Diversity Redundancies Tenure

Tenure

Some workforce metrics can be an indicator for more than one workforce theme. For example, tenure

can indicate the level of workforce mobility and can also be indicative of workforce capability in

terms of corporate knowledge and experience. While you will generally select metrics with a

particular purpose in mind, it is worth considering the alternative uses with a view to expanding and

developing your analysis and reporting over time. Some metrics can be combined to enable a greater

granularity of analysis. For example, resignations by age provide a more detailed profile and greater

level of meaning in relation to who is leaving the organisation, than resignations alone.

Lead and lag indicators

Workforce metrics are sometimes referred to as lead or lag indicators. Lead indicators inform future

activities while lag indicators provide information about the past. The results of a recruitment

intentions survey would be lead indicators because they can be used to inform future recruitment

activity or forecast workforce growth. The absence rate for the past quarter would be considered a lag

indicator because it is based on past absences.

Lag indicators are useful in establishing trends (comparison with previous lag indicators), to assist

with forecasting the future state of the workforce if no action is taken. They can also be useful in

understanding seasonal fluctuations and peak periods of business activity, and the ongoing impact of


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particular events or strategies and initiatives. They can also assist with establishing targets, such as

attendance and unscheduled absence targets. For lag indicators, it is important to identify if there are

any anticipated future impacts that may limit the effectiveness of a lag indicator as a predictor of the

future, such as a slowing economy in relation to staff exit rates, for example. For lead or lag

indicators, it is important to clarify the time point they were captured.

While it is worth considering the time horizon informed by workforce metrics, it does not determine

their value as strategic measures. Workforce metrics are of strategic value if they support delivery of

the strategic goals and objectives of the organisation.

Forecasting (Trend Analysis)

Trend analysis is the process of estimating what the workforce will look like at future time points

within your planning horizon. It takes into consideration past trends and ratios for metrics such as

staff exits, age and absence, etc. Trends are ideally based on three years of historical data, calculated

on a monthly basis to flatten out any unusual highs and lows and seasonal fluctuations. These highs

and lows, and the reason for them, need to be considered when determining an agreed and realistic

rate.

Taking a simplistic approach to trend analysis, you can then use this rate to estimate the effect on the

workforce into the future if you take no action today. This is based on an assumption that all else will

remain the same and patterns will remain stable. A more complex approach considers the impact on

the workforce of external factors, such as labour market forces (unemployment rate, skills shortages

and budget forecasts, etc.).

Analysing workforce data to identify any workforce issues that could pose risk to the delivery of business outcomes and outputs

Strategic workforce analysis involves examining your workforce data in depth, to achieve a more

sophisticated level of understanding and identify potential workforce risks. It examines what is

happening (within the context of the broader internal and external environment), where, how and why

it is happening and, importantly, what it might look like in the future if left unattended.

Example

Measuring the organisation’s staff exits indicates the rate at which employees are leaving the

organisation. However, to understand the nature (or root cause) of staff exits, a more detailed and

broader level of analysis is required.

Examining the exit rate at a more granular level, such as occupational groupings, may reveal that staff

exits are particularly high in certain groups. If low rates elsewhere offset the higher rates, the

organisation’s rate will mask these potential workforce risks.

Examining exit rates over time may indicate a recent spike, a steady increase over time, or a systemic

high level. The timing may coincide with an organisational change program or some other significant

event. Extrapolating a trend into the future will provide a forecast of staff exits if no further action is

taken.

Examining the destination of exiting staff may reveal that some areas of the organisation are supply

sources for others. Combining staff exit data with performance data may reveal whether high

performers are exiting at a higher rate, while consulting staff exit survey results is also likely to provide

additional strength to your analysis.


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The more granular the level of detail, the greater the number of relevant metrics you combine into your

analysis, and the greater the number of additional sources you consult, the stronger the analysis and

level of understanding achieved.

Consulting the business to assess potential impact of workforce issues on business delivery

Once you have a thorough understanding of any workforce issues, you can assess the potential

implications for delivery of business outcomes and outputs. Herein lies the real value of strategic

workforce analysis and reporting as it provides the basis for taking action.

In order to translate workforce data into information that is useful to the business, it is recommended

you consult your key business stakeholders, who are effectively your subject matter experts. They

have an intimate knowledge of the business and business demand, and can therefore make linkages

between the state of the workforce and how this translates into associated risks to business.

To better understand workforce risk, it may be useful to consider the workforce in terms of

occupational groupings (job families) and/or critical job roles, if this approach to workforce

segmentation has been progressed within your organisation. For example, high-level staff intentions

to exit within roles that have long lead times for developing new staff pose greater risk to business

than roles that are more easily and readily filled.

Establishing a working group may be useful to engage with your key business stakeholders, and also

provides a good foundation for the ongoing management of any change process required to mitigate

workforce risks. A working group to progress workforce planning may already exist, and could be

utilised for this purpose in order to strengthen the link between workforce analysis and reporting, and

workforce planning.

Consulting key business stakeholders also assists to engage them in the process and broaden their

perspective. It positions them to better understand their workforce requirements and influence the

state of the workforce to manage potential workforce risks. It also helps to ensure the organisation is

focusing on what is most important to the delivery of business, and that it is implementing responsive

and targeted workforce strategies and initiatives.

Example

A high staff exit rate is generally considered a workforce risk due to loss of experience, skills and

capabilities, and corporate knowledge. It can also indicate increasing cost in terms of recruitment and

the time to fill a higher number of vacancies and develop a larger number of new employees.

A high exit rate for a particular sector of the workforce could be of significant risk if it is critical to the delivery of business outcomes and outputs. If a high proportion of exiting staff have a long tenure with

the organisation, the risk may be higher due to the associated loss of corporate knowledge.

In some workforce sectors, high exit rates may be appropriate given the demanding nature of the work.

It might also indicate where ‘burn out’ is occurring, thereby enabling the organisation to reorganise

work or create career paths that limit the loss of corporate knowledge.

There are other sectors where it might also be expected, and therefore not necessarily considered a

risk, such as the age group approaching retirement, or for non-ongoing employees or employees on

long term leave who resign after utilising all of their leave entitlements.

It is through consultation with key business stakeholders that you will be able to draw such

conclusions.


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It is also important to understand the point at which the organisation realises a return on its investment

in the recruitment of a new employee.


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Reporting to key business stakeholders on the workforce and any associated workforce risks, to inform organisational decision making towards mitigating these risks

Any workforce issues or risks need to be communicated to the relevant key business stakeholders, to

inform them in their business planning and decision making.

A commonly cited barrier to progressing strategic workforce planning is a lack of executive buy-in.

Transitioning from traditional transactional-style HR reporting to strategic workforce reporting (with

direct linkages to the business), can provide business managers with evidence based information and

analysis that they can easily understand and absorb. Strategic workforce reporting is one method by

which HR can gain credibility and influence in organisational decision making.

Reporting format and frequency will vary depending on the purpose, the needs and circumstances of

your organisation, and the needs and preferences of your key business stakeholders. However, it can

be useful to establish a regular reporting schedule (such as monthly and/or quarterly) as agreed with

your key business stakeholders. The data you report on will also vary and again, it is useful to consult

your key business stakeholders.

Effective workforce reporting utilises techniques to most effectively present information, in order to

solicit inquiry and discussion from the targeted audience.

When considering how to approach workforce reporting, you might consider the following points:

• Data integrity – Note any strengths and weaknesses in the data so that your key business

stakeholders are aware of any limitations, as they will be using the data to inform their decision

making. This will also help gain support for taking steps to improve the data.

• Audience – Understand how your key business stakeholders like to receive information and what

drives them; what their priorities, interests and background are. This will influence the focus of

your reporting, as well as the format, style and language you adopt. Key business stakeholders will

generally prefer reporting that utilises business language rather than HR language. Consider also

what reports your audience already receives, and how strategic workforce reporting might fit in

relation to these.

• Purpose – Determine the key messages you want to communicate to your key business

stakeholders, why you are presenting the report, what outcomes you are seeking, and what action

might then be taken.

• Format – Consider how to most effectively communicate your key messages, based on the nature

of the data (and associated messages), the outcomes sought, and your audience’s needs and

preferences. Consider the complexity of the data (and associated messages).

• Frequency – Determine how frequently to report, based on the nature of the data (and associated

messages), the outcomes sought and the audience’s needs and preferences. Determine how

frequently other reports are provided, and how strategic workforce reporting might fit in relation to

these.

• Definitions – Obtain consensus and clarify the definition and method for calculating each

workforce metric (e.g. in an appendix to your report). This will ensure transparency, prevent

misunderstanding and promote consistency. Appendix A provides a reference point for workforce

metrics commonly monitored by organisations, including definitions and formulas for calculation.


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Levels of strategic workforce reporting

There are generally three levels of strategic workforce reporting: monthly, quarterly and issue-specific

(or deep dive) reports as required. There are general recommendations for each type, however it is

important to consider the needs and circumstances of your organisation, and the needs and preferences

of your key business stakeholders, so they can be adapted accordingly. While the three levels of

reporting will differ, and aim to meet different business needs, ideally they should still support and

complement each other.

• Monthly reporting – The aim of monthly reporting is generally to provide an overview of the

workforce, and how it has changed over the month compared to the previous month. It usually

highlights any trends or other workforce risks that have emerged during the month, and commonly

targets select stakeholders from key business areas.

Monthly reports can be effective in engaging your stakeholders, by stimulating their interest and

providing regular exposure to workforce data. They enable potential risks to specific business areas

to be monitored, and promote understanding of workforce risks and opportunities.

In general, it is recommended that monthly reports:

• are succinct;

• draw comparison with either the previous month or the same month in the previous financial

year, and the financial year-to-date; and

• utilise graphs, charts and tables.

• Quarterly reporting - Quarterly reporting generally provides a more detailed level of analysis

(within the context of strategic workforce considerations). It usually focuses on a broader range of

workforce themes and is commonly targeted at a broader group of key business stakeholders from

across the organisation.

Quarterly reporting provides an opportunity to raise issues that could pose risk to business

delivery. It provides an opportunity to present a more strategic level of analysis, and make

recommendations for action.

In general, it is recommended that quarterly reports:

• are analytical, detailed and thorough;

• provide an overview of the wide range of workforce themes;

• highlight any prevailing workforce gaps and other workforce issues;

• draw comparisons with either the previous quarter or the same quarter in the previous financial

year, and the financial year-to-date;

• indicate performance against workforce targets and relevant benchmarks;

• utilise graphs, charts and tables along with supporting written analysis; and

• include any recommendations for further action, where this is required.


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• Issue-specific reporting - Issue-specific reports are ‘deep dive’ reports that provide an

opportunity to examine in depth a particular workforce gap, trend or other workforce issue (within

the context of strategic workforce considerations). The issue generally poses significant risk to the

delivery of business outcomes and outputs. Issue-specific reports are provided on an ‘as required’

basis, but generally no more than once or twice per year due to the level of analysis and

preparation involved. They are commonly targeted at a specific audience, depending on the issue.

The following table provides tips for framing and planning strategic workforce reporting on a

monthly, quarterly and issue-specific basis.

Table 2. Tips for framing and planning strategic workforce reporting

Tips for framing and planning strategic workforce reporting on a monthly, quarterly and issue-specific

basis

Aspect of reporting Level of reporting

Monthly reporting Quarterly reporting Issue-specific reporting

Length 1-2 pages (A3 or A4) No more than 15 pages No more than 30 pages

Presentation Graphical summary Written report including

graphs, charts and tables

Deep-dive report

Audience Select key business

stakeholders

Key business

stakeholders, more

broadly

A specified audience for

a particular purpose

Metrics High level workforce data

of note that can change

within the period of a

month, as well as any

workforce issues that

require monitoring on an

ongoing basis.

Quarterly data on

workforce availability,

profile, mobility and

capability, as well as any

strategic workforce

considerations for the

quarter.

Detailed reporting on a

particular workforce trend

or other workforce issue

that requires deeper

analysis.

Data comparison Data commonly

compared to the previous

month, the same month

in the previous financial

year, and the current

financial year-to-date

Data commonly

compared to the previous

quarter, the same quarter

in the previous financial

year, and the current

financial year-to-date

Data comparison points

are drawn as relevant to

the issue

Reporting period The previous month. The previous financial

year quarter:

Q1: July – September

Q2: October – December

Q3: January – March

Q4: April – June.

Time period relevant to

the issue

Circulation Within the first week of

the following month.

Within the first two weeks

of the following quarter.

Once a year.


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While it might generally be appropriate to circulate monthly reports directly to the audience, it may be

useful to table quarterly and issue-specific reports for presentation and discussion at Executive

meetings. This ensures visibility of the issues and promotes discussion at a strategic level.

Example

It might be appropriate to report on staff exits quarterly, however if an increasing trend begins to

emerge in a particular business division, it may need to be included in monthly reporting to the relevant Executive. This would flag the trend as an issue possibly requiring further investigation in relation to

impact on business.

If the trend continues, it may become the focus of an issue-specific report that analyses the issue

further; to consider the implications for business delivery (for the division and the organisation), and

consider possible strategy options.

For all levels of reporting:

• consider using graphs, charts, symbols or pictures to visualise the data and draw attention to key

messages

• where possible, build a story showing how one workforce issue may lead to another which, in turn

may lead to the emergence of a workforce risk;

• consider using forecasts to analyse the extent to which workforce trends may become workforce

issues or risks;

• focus on facts;

• ensure calculations are accurate;

• keep it as succinct as possible, given the level of data complexity;

• reference internal and external style guides;

• reference relevant other documents and sources of information; and

• prepare for presentations.

Managing workforce risks

A further key consideration of strategic workforce analysis and reporting is managing identified

workforce risks to delivery of business outcomes and outputs. This encompasses a number of

considerations, such as:

• Identifying strategy and initiative options to address workforce risks,

• Setting aspirational targets,

• Benchmarking, and

• Measuring, evaluating and adjusting.

If your organisation has mature workforce planning in place, the strategy options for addressing

workforce risks are likely to have been identified and implemented as part of that process. However,

based on the ongoing identification of emerging workforce risks (through strategic workforce analysis

and reporting), existing strategies may need to be adjusted (or ceased), and new ones implemented.


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Identifying strategy and initiative options to address workforce risks

Regular monitoring of workforce data informs workforce plans, enabling them to be adjusted and

reviewed on an ongoing basis. Strategy development and implementation will be most effective if you

explore the success likelihood of all options, and the limitations and costs in relation to the expected

benefit. This will enable you to better engage with, and gain support and commitment from the

appropriate key business stakeholders. It is helpful to ensure that each strategy and initiative has

associated targets aligned to them, so that you can report on their outcomes, and monitor and adjust as

appropriate.

Example

If strategic workforce reporting indicates that staff exits are particularly high in an occupational

grouping that is critical to business delivery, this enables strategies to be targeted appropriately at that

occupational grouping. This ensures resources are invested where they are needed most, and will have

the most impact.

By monitoring staff exits on a regular basis, you will be in a position to report on whether there has

been a return on your investment of resources. That is, you will be able to provide evidence that

indicates whether the strategies targeted at the occupational grouping are succeeding.

Setting aspirational targets

You might consider setting aspirational targets to indicate the desired state of the workforce that will

enable the organisation to effectively deliver its business outcomes and outputs. These targets are

ideally set within the context of the organisation, in isolation from other organisations. Consultation

with, and endorsement from key business stakeholders will be invaluable in this process, given their

intimate knowledge of the business and the workforce required.

Targets should be set so that they are SMART (specific, measurable, achievable, realistic, and time-

bound)—see Appendix B for further explanation.

Example

An organisation may set its target for staff exits at a rate that it considers will ensure:

- sufficient retention of corporate knowledge,

- allow for a level renewal and refreshment of capability, and

- maintain costs associated with replacing staff at an acceptable and affordable level.

However, if staff exits are particularly high in a business division that is critical to business delivery,

the critical target will not be the target rate for the organisation, but for the business division itself.

Benchmarking

You may also consider benchmarking against similar organisations, to gauge the organisation’s

performance within a broader context. Comparison against similar organisations can be a means by

which improvements in performance are sought, and best practice is ensured. Benchmarking can be

undertaken internally (against other cross sections or divisions of the organisation) and externally


16


(against other APS organisations6 or private sector companies). In either case, for effective

comparison to be drawn, you must ensure that the definitions and calculations associated with your

organisation’s metrics are the same as those used by the organisation you are benchmarking against.

Benchmarking will be most effective if you identify those organisations that produce similar outputs,

have similar constraints, and similar workforce requirements. For example, it may not be realistic for

a call centre function to benchmark itself against APS-wide metrics, however benchmarking against

similar occupations will be more relevant. Even for similar occupations, the context may be quite

different. For example, call centres in a public service context might be quite different to call centres

in a private sector context. While benchmarking can be useful, it will very rarely if ever provide direct

comparison between identical metrics in identical contexts.

Benchmarking workforce metrics may assist you to communicate your key messages more

effectively, by drawing attention to similar organisations and highlighting strengths that provide

opportunities for development within your own organisation. It also provides an opportunity to draw

from the experiences of, and lessons learned by other organisations you identify as benchmark

exemplars.

Measuring, evaluating and adjusting

For workforce reporting to be valuable and credible, it needs to tell your key business stakeholders

how the organisation’s workforce is performing in line with expected outcomes and aspirational

targets. Workforce data supports this evaluation process as it can be used to measure the effectiveness

of strategies, and determine whether there are any adjustments required.

Performance against targets should be monitored regularly to ensure that strategies and initiatives are

succeeding. It is a good idea to provide ongoing progress reports to your key business stakeholders to

ensure there are no surprises, and adjustments can be made as required.

6 The Australian Public Service Employment Database Internet Interface (APSEDII) is a useful resource to assist with

benchmarking against other APS organisations. The APSEDII provides querying capability on a database of staff employed within the APS under the authority of the Public Service Act 1999 and can be accessed through the APSC website at: https://www.apsedii.gov.au/APSEDIIFirstPage_index.htm.


17


Appendix A: Common workforce metrics

Workforce theme: Workforce availability

Category Metric Sources

referenced*

Definition Formula Purpose

Employment

type

(Category)

Employment

type profile

-SOSR.

-Statistical

Bulletin.

The breakdown of the organisation’s total workforce by

employment types within the workforce.

Employment types include:

Ongoing—Permanent employees.

Non-ongoing—Non-ongoing employees engaged for a

specified term or task.

Casual—Non-ongoing staff engaged for duties that are

irregular or intermittent.

Contractor—Workers paid through a third party.

Can also be presented as the percentage of the total

workforce by employment type.

Note:

The total workforce includes employment types not

included in total headcount.

For each employment type:

Headcount (Employment type)

Percentage breakdown

For each employment type:

Headcount (Employment type) /

Headcount (Total

workforce)*100

Useful for understanding the mix of your

workforce in relation to types of employment

arrangements.

Useful for organisations that frequently

utilise or have large proportions of non-

ongoing employees (or contractors or

casuals).

Can be useful for examining seasonal or

cyclical workload and ability to respond to

surges in workforce demand.

Headcount Total

headcount

Developed in

consultation

with APS

agencies.

The number of employees directly employed by the

organisation at a point in time.

Includes:

- All full-time and part-time, ongoing and non-ongoing

employees engaged for a specified term or task,

including those on leave, such as maternity leave, long

service leave, etc.

Excludes:

-*Non-ongoing staff engaged for duties that are irregular

or intermittent (casuals).

-*Workers paid through a third party (contractors).

*If you opt to include casuals and contractors in your

total headcount, this should be specified clearly.

Number of ongoing employees

+ Number of non-ongoing

employees (specified term/task)

Indicates the number of employees working

for the organisation, regardless of hours

worked, other working arrangements or

leave.

Useful for workforce profiling as other

workforce metrics are also provided in terms

of headcount (recruitment and exit rates, for

example).

Headcount is useful when measuring data

that relates to individuals (such as age,

gender, diversity, etc.).


18



referenced*


Headcount

(Continued)

Total

headcount

(Ongoing)

Adapted from

‘Total

headcount’.

The number of ongoing employees directly employed by

the organisation at a point in time.

Number of ongoing employees Indicates the size of the core workforce for

the organisation, regardless of hours

worked and other working arrangements or

leave.

Average

headcount

Adapted from

‘Total

headcount’.

The average number of employees directly employed by

the organisation over a specified period.

Average headcount is the average of total headcount at

the end of the period and total headcount at the

beginning of the period.

Total headcount (end of period)

+ Total headcount (beginning of

period) / 2

Removes unusual variances that can be

associated with data at a point in time, and

therefore gives a more accurate reflection of

the level of staffing over the period.

Average

headcount

(Ongoing)

Adapted from

‘Total

headcount

(Ongoing)’

and ‘Average

headcount’.

The average number of ongoing employees directly

employed by the organisation over a specified period.

Average headcount (ongoing) is the average of total

headcount (ongoing) at the end of the period and total

headcount (ongoing) at the beginning of the period.

Total headcount (Ongoing)(end

of period) + Total headcount

(Ongoing)(beginning of period) /

2

Removes unusual variances that can be

associated with data at a point in time, and

therefore gives a more accurate reflection of

the level of ongoing staffing over the period.


19



referenced*


Full time

equivalent

(FTE)

Total FTE -Agency

Survey.

The number of full-time equivalent employees directly

employed by the organisation at a point in time.

Part-time employees are converted to full-time

equivalent.

Includes:

-all active full-time and part-time, ongoing and non-

ongoing employees engaged for a specified term or task

paid through payroll (part-time employees are converted

to full-time equivalent based on the hours they work).

Excludes:

-Overtime.




-Employees on unpaid leave—see ‘Note’ below.

*If you opt to include casuals and contractors in your

total FTE, this should be specified clearly.

Note:

There may be variations in the way systems calculate

full-time equivalent. For example, Human Resources

systems will generally include employees on leave

without pay, whereas Financial systems won’t generally

include employees on leave without pay.

Number of full-time equivalent

employees + Total part-time

hours / Standard full-time hours

Example:

If standard (full-time) hours per

fortnight = 75 and there are 200

employees, including 20 part-

time employees:

180 are full-time

-10 work 40 hrs/fortnight

[= 10*(40 / 75) = 5.33 FTE]


[= 6*(30 / 75) = 2.40 FTE)


[= 4*(25 / 75) = 1.33 FTE)

Therefore, Total FTE = 180(full-

time employees) +

[5.33+2.40+1.33] = 189.06

Indicates the number of active full-time

equivalent employees (based on

aggregated hours worked by all full-time and

part-time employees) at a point in time, and

is generally used to manage employee

budget allocation and ensure adequate

staffing.

Full-time equivalent (versus headcount) is

useful when measuring workforce capacity

and workforce cost.


20



referenced*


Full-time

equivalent

(FTE)

(Continued)

Paid FTE Adapted from

‘Total FTE’.

The number of full-time equivalent employees receiving

salary or wages by the organisation at the end of a pay

period.

Part-time employees are converted to full-time

equivalent.

Includes:

-all active full-time and part-time, ongoing and non-

ongoing employees engaged for a specified term or task

paid through payroll (part-time employees are converted

to full-time equivalent based on the hours they work).

Excludes:

-Overtime.




-Employees on unpaid leave.

Number of paid full-time

equivalent employees + Total

part-time hours / Standard full-

time hours.

Example:

If standard (full-time) hours per

fortnight = 75 and there are 200

employees, including 20 part-

time employees:

180 are full-time


[= 10*(40 / 75) = 5.33 FTE]


[= 6*(30 / 75) = 2.40 FTE)


[= 4*(25 / 75) = 1.33 FTE)

Therefore, Total FTE = 180(full-

time employees) +

[5.33+2.40+1.33] = 189.06

This metric is used as the basis to calculate

the Average Staffing Level for the financial

year.

Total FTE

(Ongoing)

Adapted from

‘Total FTE’.

The number of full-time equivalent ongoing employees

directly employed by the organisation at a point in time.

Number of full-time equivalent

employees (Ongoing) + Total

part-time hours (Ongoing) /

Standard full-time hours

Indicates the size of the core workforce for

the organisation at a point in time, in terms

of full-time equivalent employees,

regardless of hours worked and other

working arrangements.

Average FTE Adapted from

‘Total FTE’.

The average number of full-time equivalent employees

employed by the organisation over a specified period.

Average FTE is the average of total FTE at the end of

the period and total FTE at the beginning of the period.

Total FTE (end of period) +

Total FTE (beginning of period)

/ 2

Useful for monitoring average workforce

capacity and average workforce cost

(salary).


21



referenced*


Full-time

equivalent

(FTE)

(Continued)

Average FTE

(Ongoing)

Adapted from

‘Total FTE

(Ongoing)’

and ‘Average

FTE’.

The average number of full-time equivalent ongoing

employees employed by the organisation over a

specified period.

Average FTE (Ongoing) is the average of total FTE

(Ongoing) at the end of the period and total FTE

(Ongoing) at the beginning of the period.

Total FTE (Ongoing)(end of

specified period) + Total FTE

(Ongoing)(beginning of

specified period) / 2

Useful for monitoring average workforce

capacity and average workforce cost

(salary) associated with the ongoing

workforce.

Average

staffing level

(ASL)

- Federal

Budget

website.

The number of full-time equivalent employees receiving

salary or wages (Paid FTE) by the organisation

averaged over the financial year.

ASL can be measured at various time points over a

financial year to enable tracking against the estimated

ASL prescribed in the Portfolio Budget Statement for the

organisation for that financial year.

Sum of Paid FTE (for each pay

period from the beginning of the

financial year up to and

including the current pay period)

/ Number of pay periods (from

the beginning of the financial

year up to and including the

current pay period)

Measures workforce expenditure against the

estimated ASL prescribed in the Portfolio

Budget Statement for the organisation for

that financial year.

The organisation’s estimated ASL is usually

allocated across individual business units by

the organisation’s finance area to enable

business units to manage their individual

allocations.

Employment

status

Employment

status profile

-SOSR.

-Statistical

Bulletin.

The breakdown of total headcount by number of full-time

employees and part-time employees.

Can also be presented as the percentage of total

headcount by employment status.

Note:

Casuals and contractors should be recorded separately

to other full-time and part-time employees as they reflect

a contractual situation as opposed to workplace

flexibility.

For each employment status:

Headcount (Employment status

category)

Percentage breakdown:

For each employment status:

Headcount (Employment status

category) / Total headcount*100

Useful for better understanding the

organisation’s workforce profile and

workforce availability, and for monitoring

and measuring access to and utilisation of

flexible working arrangements.


22



referenced*


Absence Unscheduled

absence rate

-CLC Metrics

(‘Unscheduled

absence rate’,

pp. 314 –

315).

-SOSR.

The full-time equivalent number of unscheduled leave

days as a percentage of the total full-time equivalent

working days during the reporting period.

Unscheduled leave is defined as leave taken in

recognition of circumstances that can generally arise

irregularly or unexpectedly, making it difficult to plan,

approve or budget for in advance, and which is inclusive

of planned medical procedures.

Note:

Total unscheduled leave days excludes leave taken by

non-ongoing staff engaged for duties that are irregular or

intermittent (casuals) or workers paid through a third

party (contractors).

Note:

By default, all other metrics based on total unscheduled

leave days also exclude casuals and contractors.

Total FTE unscheduled leave

days/Total FTE working

days*100

Provides an indication of the prevalence of

unscheduled leave in an organisation, and

may be particularly useful for organisations

that are significantly impacted by employee

absences.

Can be useful for understanding the timing

of absences and anticipate staffing needs,

and can be indicative of costs and

productivity losses.

Can also be indicative of workforce morale,

or potential impact on workforce morale.

Unscheduled

absence rate

per employee

-CLC Metrics

(‘Unscheduled

absence days

per employee’,

pp. 312 –

313).

-SOSR.

The average number of full-time equivalent unscheduled

leave days per full-time equivalent employee.


days / Total FTE*100


23



referenced*


Absence

(Continued)

Unscheduled

absence type

profile

-Agency

Survey.

The breakdown of total full-time equivalent unscheduled

leave days by leave type (leave types outlined below).

Can also be presented as the percentage of total full-

time equivalent unscheduled leave days by leave type.

Unscheduled leave types include:

Sick—A workplace absence, regardless of duration,

whether paid or unpaid, due to personal illness or injury

or to undergo a planned medical procedure.

Carer’s—A workplace absence, regardless of duration,

whether paid or unpaid, to provide care or support for a

member of the employee’s immediate family or

household who requires care or support.

Compensation—A workplace absence resulting from

personal injury or disease sustained out of, or in the

course of, employment (i.e. work related) and accepted

by Comcare.

Specific types of miscellaneous/other—A workplace

absence, regardless of duration, whether paid or unpaid,

that is taken upon the death of a member of the

employee’s immediate family or household

(bereavement), or to spend time with a seriously ill,

injured or dying person who is a member of the

employee’s immediate family or household

(compassionate), or in the event of an unexpected

emergency.

Unauthorised—A workplace absence, regardless of

duration, whether paid or unpaid, that given the

circumstances is not supported or approved by

management. For example an absence due to

participation in workplace disputes.

For each unscheduled absence

type:

Total FTE leave days

(Unscheduled absence type)


For each unscheduled absence

type:

Total FTE leave days

(Unscheduled absence type) /


days*100

Particularly useful for organisations that

have identified an issue with unscheduled

leave and wish to understand it further so

they can implement targeted strategies or

initiatives to address it.


24


Workforce theme: Workforce profile


referenced*


Location Location

profile

-SOSR.

-Statistical

Bulletin.

The breakdown of total headcount by geographic

location.


headcount by location.

For each location:

Headcount (Location)


For each location:

Headcount (Location) / Total

headcount*100

Particularly useful for organisations with a

widespread workforce.

Also useful in linking to the external labour

market (particularly regional and local labour

markets).

Useful to understand the trends presenting

within the data for different locations, across

various workforce themes.

Occupational

grouping/

Job family

Occupational

group/Job

family profile

-WFP Guide.

-Job Family

Model.

-SOSR.

The breakdown of total full-time equivalent employees

by occupational group (or job family).


time equivalent employees by occupational group (or job

family).

For each occupational group:

FTE (Occupational group)


For each occupational group:

FTE (Occupational group) /

Total FTE*100

Useful for better understanding the

composition of the organisation’s workforce,

to monitor occupational groupings or job

families that are critical to business delivery,

or of particular risk due to labour market

shortages.

Also useful for monitoring over- or under-

resourcing and workforce allocations, etc.


within the data for different occupational

groupings or job families, across various

workforce themes.


25



referenced*


Work function Work function

profile

-Internal

(APSC) input.

The breakdown of total full-time equivalent employees

by work function (ongoing functions versus temporary

projects).


time equivalent employees by work function.

Note:

Consideration might also be given to reporting on the

number/percentage of total full-time equivalent

employees on long term temporary transfer (e.g. greater

than 90 days) to projects (temporary work functions)—by

project—and the number/percentage of temporary

vacancies (resulting from the temporary transfers) that

are being back-filled.

For each work function type:

FTE (work function type)


For each work function type:

FTE (work function type) / Total

FTE*100

Useful for considering the impact on the

workforce of temporary projects and

analysing real staffing levels over time.

Classification

level

Classification

profile

-SOSR.

-Statistical

Bulletin.

The breakdown of total headcount by classification level.


headcount by classification level.

Note:

Consideration needs to be given to whether this metric is

measured on the basis of substantive classification

(which excludes temporary assignment at another

classification level) or actual classification (which

includes temporary assignment at another classification

level), or both.

While substantive classification reflects the underlying

composition of the workforce itself, it does not accurately

reflect the workforce currently required.

Reporting on both substantive and actual classification

provides a clearer picture in relation to workforce supply,

workforce demand, and workforce cost. It also provides

information about the development opportunities

available to staff.

For each classification level:

Headcount (Classification level)


For each classification level:

Headcount (Classification level)

/ Total headcount*100

Useful for monitoring the composition of the

workforce.

May also be indicative of changing levels of

work complexity, workforce cost, labour

market shortages, and attraction issues, etc.


within the data for different classification

levels, across various workforce themes.


26



referenced*


Classification

level

(Continued)

EL to APS

Classification

Ratio

-APS agency

input.

-CLC Metrics

(‘Staffing

rate—

managerial’,

pp. 458 –

459).

-SOSR.

The number of EL employees for every APS employee.

Note:

You may also consider reporting on:

-number of SES employees for every APS/EL employee.

-or number of EL 2 employees to employees at lower

classifications.

Total headcount (APS

classification levels) / Total

headcount (EL classification

levels)

Useful in understanding the proportion of

managers to line staff, and for monitoring

changing leadership patterns over time.

Age Age profile -SOSR.

-Statistical

Bulletin.

-CLC Metrics

(‘Age staffing

breakdown’,

pp. 422 –

423).

The breakdown of total headcount (ongoing) by age

group.

Age groups include:

Under 20 years

20-24 years

25-29 years

30-34 years

35-39 years

40-44 years

45-49 years

50-54 years

55-59 years

60 years and over


headcount (ongoing) by age group.

For each age group:

Headcount (Ongoing)(Age

group)


For each age group:

Headcount (Ongoing)(Age

group) / Total headcount

(Ongoing)*100

Useful for assessing the potential risk posed

by likely age retirements and associated

loss of corporate knowledge, skills and

experience.

Also useful in understanding employee

preferences and behaviours, to inform

employment value propositions, for

example.

Approaching

retirement age

rate (50+)

-CLC Metrics

(‘Staffing

rate—50+

years old’, pp.

430 – 431).

The number of ongoing employees in the age range

considered to be approaching retirement (50 years or

older) as a percentage of total headcount (ongoing).

Headcount (Ongoing)(50 years

or older) / Total

headcount(Ongoing)*100




experience.


27



referenced*


Age

(Continued)

Average

workforce age

-CLC Metrics

(‘Average

workforce

age’, pp. 424

– 425).

The average age of total headcount (ongoing). Sum of all ongoing employees’

ages / Total headcount

(Ongoing)




experience.

Also useful in understanding employee

preferences and behaviours, to inform

employment value propositions, for

example.

As a single metric, provides a quick and

simple indication of workforce age, but does

not provide any indication of the dispersion

of ages around the average.

Gender Gender profile -SOSR.

-Statistical

Bulletin.

The breakdown of total headcount by number of men

and number of women employees.


headcount by gender.

For each gender:

Headcount (Gender)


For each gender:

Headcount (Gender) / Total

headcount*100


organisation’s workforce, and to assist with

promotion of workforce diversity.


28



referenced*


Diversity Workforce

diversity

profile

-SOSR.

- Statistical

Bulletin.

The breakdown of total headcount (ongoing) by diversity

group.

Diversity groups include:

Aboriginal and Torres Strait Islander

Non-English Speaking Background (NESB) 1—

People born overseas who arrived in Australia after the

age of five and whose first language was not English.

Non-English Speaking Background (NESB) 2—

Children of migrants including: those who were born

overseas and arrived in Australia when they were aged

five or younger but did not speak English as a first

language; those who were Australian born but did not

speak English as a first language and had at least one

NESB 1 parent; and those people who were Australian

born and had neither parent speaking English as a first

language.

Disability


headcount (ongoing) by diversity group.

For each diversity group:

Headcount (Ongoing) (Diversity

group)


For each diversity group:

Headcount (Ongoing) (Diversity

group) / Total

headcount(Ongoing)*100


organisation’s workforce, and to assist with

promotion of workforce diversity.


29


Workforce theme: Workforce mobility


referenced*


Recruitment Recruitment

rate

-CLC Metrics

(‘External hire

rate’, pp. 34 –

35).

The number of ongoing employees recruited during the

period as a percentage of average headcount (ongoing)

for the period.

Recruitment headcount

(Ongoing) / Average headcount

(Ongoing)*100

Useful for monitoring the volume of

recruitment activity, and the rate at which

new employees are entering the

organisation.

Provides an indication of the relative

‘newness’ of the workforce, and can also be

indicative of the rate of turnover.

Internal and

External

recruitment

rate

-SOSR. The percentage of competitive selection exercises (for

ongoing positions) filled by internal applicants, and the

percentage filled by external applicants.

Number of competitive selection

exercises (Ongoing positions)

filled by internal/external

applicants / Total competitive

selection exercises (Ongoing

positions) filled*100

Provides an indication of the extent to which

the organisation’s employees are capable of

taking up new positions in the organisation.

Is indicative of how appropriately employees

have been developed and the availability of

a broad internal succession pool.

Can also be indicative of the level of

insularity of the organisation, and its

capacity to compete effectively as a

preferred employer.

Net

recruitment

rate

-CLC Metrics

(‘Net hire

ratio’, pp. 36 –

37).

The number of ongoing employees recruited during the

period for every ongoing employee terminated during the

period.

Recruitment headcount

(Ongoing) / Termination

headcount (Ongoing)*100

Indicates whether the organisation’s

workforce is growing (net recruitment rate

greater than 1) or contracting (net

recruitment rate less than 1).

Promotion rate -CLC Metrics

(‘Promotion

rate’, pp. 60 –

61).

-SOSR.

-Statistical

Bulletin.

The number of ongoing employees promoted during the

period as a percentage of average headcount (ongoing)

for the period.

Internal promotions (Ongoing) /

Average headcount

(Ongoing)*100

May be indicative of the level of employee

performance and management and

leadership skills and capabilities, or issues

associated with the organisation’s

performance management process, or its


preferred employer.


30



referenced*


Recruitment

(Continued)

Average time

to finalise

selection

exercises

-SOSR. The average number of working days to finalise

competitive selection exercises (for ongoing positions),

from the date of advertising to when an offer of

employment is made.

Note:

A selection exercises does not necessarily equate to

one position. For example, a bulk selection round is

counted as one selection exercise, even if more than

position is filled through this process.

Sum of total working days to

finalise all competitive selection

exercises (Ongoing positions) /

Offers accepted(Ongoing

positions)

Useful for measuring the efficiency of

selection processes, however does not

account for the delay factor between an

offer being made and the successful

candidate commencing in the position.

Average time

to fill selection

exercises

-SOSR. The average number of working days to fill competitive

selection exercises (for ongoing positions), from the date

of advertising to the date the successful candidate

commences in the position.

Sum of total working days to fill

all competitive selection

exercises (Ongoing positions) /

Offers accepted(Ongoing

positions)

Useful for measuring the time it takes to

have new employees on board for positions

that are vacant, and accounts for the delay

factor between an offer being accepted and

the successful candidate commencing in the

position.

Applicant rate

(internal and

external

recruitment

processes)

-CLC Metrics

(‘Applicant

ratio’, pp. 72 –

73).

The average number of applicants for internal and

external recruitment processes.

Total applicants

(Internal/external recruitment

process) / Total offers accepted

Useful for gauging the resource requirement

for conducting recruitment processes, and

can also be indicative of the level of demand

for various positions and the organisation’s


preferred employer.

Secondments Secondment

rate (in to and

out of the

organisation)

Developed in

consultation

with APS

agencies.

The number of secondments of ongoing employees (in

to/out of the organisation) as a percentage of total

movements of ongoing employees..

Secondments (In/out) / Total

movements*100

Useful for examining the availability of skills

development opportunities for employees

through secondments out of the

organisation.

Also useful for measuring the level of

secondments to the organisation, which

provide an alternative source for filling

temporary skills demands and a source of

new ideas, creativity and innovation.


31



referenced*


Transfers Internal

transfer rate

-SOSR.

-CLC Metrics

(‘Lateral

mobility’, pp.

58 – 59).

The number of permanent lateral movements of ongoing

employees as a percentage of total movements of

ongoing employees.

Lateral movements / Total

movements*100

Useful for examining the availability of skills

development opportunities for employees

through lateral moves across the

organisation.

External

transfer rate

(in to and out

of the

organisation)

-SOSR. The number of permanent external movements of

ongoing employees (in to/out of the organisation) as a

percentage of the total movements of ongoing

employees.

External movements (In/out) /

Total movements*100

Useful for tracking the level of mobility in to

and out of the organisation.

Exits Agency exit

rate

-SOSR.

-Statistical

Bulletin.

-CLC Metrics

(‘Termination

rate’, pp. 120

– 121).

The number of ongoing employees who left the

organisation during the period (voluntarily and non-

voluntarily) as a percentage of the average headcount

(ongoing) for the period.

Includes:

-Age retirements (s.30 of the PS Act)

-Retrenchments (s. 29(3)(a))

-Invalidity retirements (s.29(3)(d))

-Other terminations of employment (ss

29(3)(b),(c),(e),(f),(g) and (h))

-Compulsory moves to a non-APS agency (s.72(1)(b))

-Resignations, and

-Deaths

-Promotions and permanent transfers to other

organisations

Exits (Ongoing) / Average


Useful for monitoring likely impact on

departure, vacancy and replacement costs,

including loss of corporate knowledge, skills

and experience, and potential impact on

workforce morale and workload.

Can also be indicative of organisational

insularity, and ineffective performance

management processes.


32



referenced*


Exits

(Continued)

APS

Separation

rate

-SOSR.

- Statistical

Bulletin.

-CLC Metrics

(‘Termination

rate’, pp. 120

– 121).

The number of ongoing employees who left the APS

during the period (voluntarily and non-voluntarily) as a

percentage of the total average headcount (ongoing) for

the period.

Includes:

-Age retirements (s.30 of the PS Act)

-Retrenchments (s. 29(3)(a))

-Invalidity retirements (s.29(3)(d))

-Other terminations of employment (ss

29(3)(b),(c),(e),(f),(g) and (h))

-Compulsory moves to a non-APS agency (s.72(1)(b))

-Resignations, and

-Deaths

Excludes:

-Promotions and permanent transfers to other

organisations

Separations (Ongoing) /

Average headcount

(Ongoing)*100

Useful for monitoring likely impact on

departure, vacancy and replacement costs,

including loss of corporate knowledge, skills

and experience, and potential impact on

workforce morale and workload.


insularity, and ineffective performance

management processes.

Exit profile -SOSR.

-Statistical

Bulletin.

The breakdown of total exits of ongoing employees

during the period by exit type.

Exit types include:

Resignations

Age retirements

Promotions and permanent transfers (to other

organisations)

Terminations

Retrenchments

Invalidity retirements

Compulsory moves to a non-APS agency

Deaths

Can also be presented as the percentage of total exits of

ongoing employees by exit type.

For each exit type:

Headcount (Ongoing)(Exit type)


For each exit type:

Headcount (Ongoing)(Exit type)

/ Total exits (Ongoing)*100

Useful for examining the reason why staff

are exiting to ensure workforce strategies

effectively target potential workforce risks.


33



referenced*


Exits

(Continued)

Voluntary exit

rate

-CLC Metrics

(‘Voluntary

termination

rate’, pp.124 –

125).

The number of ongoing employees who left the

organisation voluntarily during the period as a

percentage of the average headcount (ongoing) for the

period.

Includes:

-age retirements

-resignations

-promotions

-ongoing transfers

Excludes:

-voluntary and involuntary redundancies

-invalidity retirements

-terminations

-Machinery of Government changes

Voluntary exits (Ongoing) /

Average headcount

(Ongoing)*100

Useful for monitoring employee-initiated

exits, to help identify gaps in the

organisation’s employment offer, or to

identify emerging trends and issues that

need to be addressed in particular business

units or occupational groups or job families.

Voluntary exit

profile

-CLC Metrics

(’Termination

reason

breakdown’,

pp. 122 –

123).

-SOSR.

The breakdown of total voluntary exits of ongoing

employees during the period by reason for exiting.


voluntary exits of ongoing employees by exit type.

Reasons may include:

-Desire to gain further experience

-Lack of future career opportunities in current agency

-Desire to try a different type of work/career change

-Lack of recognition in current agency for doing a good

job

-Lack of opportunity to work on innovative projects in

current job

-Current remuneration package

-Interests do not match responsibilities of current job

-Senior leadership in current agency is of a poor quality

-Promotions in current agency not based on fair and

transparent recruitment processes

-Desire to relocate

For each exit reason:

Voluntary exits (Ongoing)(Exit

reason)


For each exit reason:

Voluntary exits (Ongoing)(Exit

reason) / Total voluntary exits

(Ongoing)*100

Useful for examining voluntary exit drivers to

ensure workforce strategies effectively

target potential workforce risks.


34



referenced*


Exits

(Continued)

New starter

exit rate

-APS agency

input.

The number of exits of new ongoing employees with

short tenure (<1 year) as a percentage of the total

number of new ongoing employees with short tenure (>1

year).

Exits (Ongoing)(Tenure < 1

year) / Headcount

(Ongoing)(Tenure < 1 year)*100

Useful in comparing the number of exits of

new starters to the total number of new

starters who could have possibly exited

during the period.

Retention rate -CLC Metrics

(‘Retention

rate’, pp. 116

– 117).

-Statistical

Bulletin.

The percentage of all ongoing employees present at the

beginning of the period still with the organisation at the

end of the period.

Note:

To obtain an accurate retention rate it is necessary to

exclude employees who have both started and ceased

during the period.

You may also consider reporting retention rates for high

performers, high potential employees and employees in

critical job roles, if these are identified by your

organisation.

[Headcount (Ongoing)(Start of

period) – Terminations

(Ongoing)] / [Headcount

(Ongoing)(Start of period) *100

Useful for monitoring the extent of

departure, vacancy and replacement costs

being incurred, and ensuring adequate

resourcing, retention of corporate

knowledge, and monitoring of existing

retention strategies.

Can also be indicative of the organisation’s

level of insularity, and ineffective

performance management systems.

Retention rate is sometimes preferred by

organisations as a more positive way of

measuring turnover than the Separation

rate.

Tenure Average

workforce

tenure

-CLC Metrics

(‘Average

workforce

tenure’, pp.

470 – 471).

The average tenure for the total number of ongoing

employees at the end of the period.

Sum of tenure [(Total headcount

(Ongoing)](End of period) /

Total headcount (Ongoing)(End

of period)

Useful for monitoring loss or potential loss of

experience and corporate knowledge.


insularity and turnover, or organisational

growth.

New starter

tenure

-CLC Metrics

(‘Staffing

rate—< - year

tenure’, pp.

474 – 475).

The number of ongoing employees who have been

employed by the organisation for less than 1 year as a

percentage of total headcount of ongoing employees.

Headcount (Ongoing)(Tenure

<1 year) / Total headcount

(Ongoing)*100

Useful for monitoring the percentage of the

workforce with less than one year of tenure

(and associated workforce challenges).


35


Workforce theme: Workforce capability


referenced*


Performance

management

Performance

appraisal

participation

rate

-CLC Metrics

(‘Performance

appraisal

participation

rate’, pp. 164

– 165).

-SOSR.

The number of ongoing employees who received a

performance rating during the period as a percentage of

the number of ongoing employees eligible to receive a

performance rating.

Number of performance ratings

(Ongoing)(End of period) /

Headcount (Ongoing)(Eligible

for appraisal at end of

period)*100


individual performance is being managed, to

ensure it aligns with organisational

expectations.

Can also be indicative of the effectiveness

of the performance management process

and the level of employee engagement.

Performance

rating profile

-CLC Metrics

(‘Performance

rating

distribution’,

pp. 166 –

167).

The breakdown of total performance appraisal ratings for

ongoing employees by rating category.

For each performance rating:

Headcount

(Ongoing)(Performance rating) /

Total performance ratings

(Ongoing)*100


individual performance aligns to

organisational expectations.

Can be useful in identifying training and

development needs and opportunities.

Can also be indicative of the effectiveness

of the performance management process

and the abilities of managers to deal with

underperformance.

Performance

rating

improvement

rate

-CLC Metrics

(‘Employee

upgrade rate’,

pp.158 – 159).

The number of ongoing employees whose current

performance rating is higher than the previous cycle, as

a percentage of the total number of ongoing employees

who participated in the process.

Headcount (Ongoing)(Improved

performance rating) / Total

performance ratings

(Ongoing)*100

Can be useful in monitoring the success of

learning and development strategies.

However, can be affected by changes in

employees’ positions. For example, a

recently promoted employee might receive a

lower performance rating than they did in

the last cycle when they were in a position

at a lower classification level.


36



referenced*


Qualifications Highest

educational

qualification

profile

-Statistical

Bulletin.

-SOSR.

-CLC Metrics

(‘Educational

attainment

breakdown’,

pp. 180 –

181).

The breakdown of total headcount (ongoing) by highest

educational qualification received.


headcount (ongoing) by highest educational qualification

received.

Qualifications may include:

-Less than year 10

-Year 10

-Year 11

-Year 12

-Basic vocational qualification

-Skilled vocational qualification

-Associate diploma

-Undergraduate diploma

-Bachelor degree

-Postgraduate diploma

-Masters

-Doctorate

For each qualification type:

Headcount (Ongoing) for which

qualification type is the highest

qualification received


For each qualification type:

Headcount (Ongoing) for which

qualification type is the highest

qualification received / Total


Provides an indication of the level of

educational attainment of the workforce.

Can assist in understanding the academic

training or certification level requirements of

key functions.

Learning and

development

Time spent on

learning and

development

type profile

-SOSR. The breakdown of time spent on learning and

development by ongoing employees, by type of learning

and development.

Can also be presented as the percentage of total time

spent on learning and development by ongoing

employees, by type of learning and development.

Types of learning and development might include:

-coaching and mentoring

-e-learning

-formal training and education courses

-on-the-job training

-academic study

-conferences and seminars

-classroom workshops

For each learning and

development type:

FTE working days spent on

learning and development type

by ongoing employees


For each learning and

development type:

FTE working days spent on

learning and development type

by ongoing employees / Total

FTE working days spent on all

learning and development types

by ongoing employees*100

Useful in examining preferences, and level

of demand for different methods of providing

learning and development, to assist with

development and implementation of future

learning and development strategies.


37



referenced*


Learning and

development

(Continued)

Participation

rate in

learning and

development

programs

-CLC Metrics

(‘Development

program

penetration

rate’, pp. 145 -

147).

The number of ongoing employees who participated in

learning and development programs as a percentage of

the total number of ongoing employees who were

eligible to participate in learning and development

programs.

Headcount (Ongoing) who

participated in learning and

development programs /

Average headcount

(Ongoing)*100


eligible employees have the opportunity to

participate in learning and development

programs and the extent to which they

utilise these opportunities.

Employee

satisfaction

with learning

and

development

(by learning

and

development

type)

-SOSR.

-CLC Metrics

(‘Employee

satisfaction

with training’,

pp. 212 -213).

Staff survey results provide insight into the level of satisfaction of employees with access to

and quality of different types of learning and development activities.

Provides an indication of the effectiveness

of different types of learning and

development, and the level of access.

Useful in informing development and

implementation of learning and development

strategies.

Workforce theme: Workforce engagement and intentions


referenced*


Employee

engagement

Staff survey results provide insight into employee attitudes and intentions and can assist with assessing levels of motivation, interest and

enthusiasm for work, career aspirations, resignation and other exit intentions, etc.

Each organisation will have developed its own methodologies for measuring employee engagement and intentions, based on their own

needs and circumstances. Employee

intentions

*Sources referenced in the development of the workforce metrics outlined in Appendix A include:

-SOSR (State of the Service Report 2010–11).

-Statistical Bulletin (APS Statistical Bulletin 2010–11).

-CLC Metrics (‘The Metrics Standard: Establishing Standards for 200 Core Human Capital Measures’, Corporate Leadership Council, 2005).

-Agency Survey (2012 State of the Service Agency Survey).

-Budget website (Australian Government Budget 2011-12 website: http://www.budget.gov.au/2012-13/content/bp1/html/bp1_bst6-10.htm).

http://www.budget.gov.au/2012-13/content/bp1/html/bp1_bst6-10.htm


38


-WFP Guide (‘Australian Public Service Workforce Planning Guide’, Australian Public Service Commission, December 2011).

-Job Family Model (‘Australian Public Service Job Family Model’, Australian Public Service Commission, December 2011).

Note: For a number of metrics outlined in the table above, a measurement unit of either headcount or full-time-equivalent number of employees is specifically suggested. This is

based on the nature of the aspect of the workforce being measured, and the general purpose for measuring it. However, organisations will ultimately choose the unit of

measurement that best suits their own needs and circumstances for each of the metrics and, in some cases, may utilise both.


39


Appendix B: Developing SMART goals7 (in the context of strategic workforce reporting)

Paul J. Meyer describes the characteristics of S.M.A.R.T. goals in Attitude is Everything.8

Specific

The first term stresses the need for a specific goal over and against a more general one. This means

the goal is clear and unambiguous; without vagaries and platitudes. To make goals specific, they must

tell a team exactly what is expected, why is it important, who’s involved, where is it going to happen

and which attributes are important.

A specific goal will usually answer the five "W" questions:

• What: What do I want to accomplish?

• Why: Specific reasons, purpose or benefits of accomplishing the goal.

• Who: Who is involved?

• Where: Identify a location.

• Which: Identify requirements and constraints.

Measurable

The second term stresses the need for concrete criteria for measuring progress toward the attainment

of the goal. The thought behind this is that if a goal is not measurable, it is not possible to know

whether a team is making progress toward successful completion. Measuring progress is supposed to

help a team stay on track, reach its target dates, and experience the exhilaration of achievement that

spurs it on to continued effort required to reach the ultimate goal.

A measurable goal will usually answer questions such as:

• How much?

• How many?

• How will I know when it is accomplished?

Attainable

The third term stresses the importance of goals that are realistic and attainable. While an attainable

goal may stretch a team in order to achieve it, the goal is not extreme. That is, the goals are neither out

of reach nor below standard performance, as these may be considered meaningless. When you

identify goals that are most important to you, you begin to figure out ways you can make them come

7 Source: Wikipedia viewed 14 june 2012 http:en.wikipedia.org/wiki/SMART_criteria#cite_note-1

8 Meyer, Paul J (2003), ‘What would you do if you knew you couldn’t fail? Creating S.M.A.R.T. Goals’, Attitude is Everything: If You Want to Succeed Above and Beyond, Meyer Resource Group Incorporated.


40


true. You develop the attitudes, abilities, skills, and financial capacity to reach them. The theory states

that an attainable goal may cause goal-setters to identify previously overlooked opportunities to bring

themselves closer to the achievement of their goals.

An attainable goal will usually answer the question:

• How: How can the goal be accomplished?

Relevant

The fourth term stresses the importance of choosing goals that matter. A Bank Manager's goal to

"Make 50 vegemite sandwiches by 2:00 pm" may be Specific, Measurable, Attainable, and Time-

Bound, but lacks Relevance. Many times you will need support to accomplish a goal: resources, a

champion voice, someone to knock down obstacles. Goals that are relevant to your boss, your team,

and your organisation will receive that needed support.

Relevant goals (when met) drive the team, department, and organisation forward. A goal that supports

or is in alignment with other goals would be considered a relevant goal.

A relevant goal can answer yes to these questions:

• Does this seem worthwhile?

• Is this the right time?

• Does this match our other efforts/needs?

• Are you the right person?

Time-bound

The fifth term stresses the importance of grounding goals within a time frame, giving them a target

date. A commitment to a deadline helps a team focus their efforts on completion of the goal on or

before the due date. This part of the S.M.A.R.T. goal criteria is intended to prevent goals from being

overtaken by the day-to-day crises that invariably arise in an organisation. A time-bound goal is

intended to establish a sense of urgency.

A time-bound goal will usually answer the question:

• When?

• What can I do 6 months from now?

• What can I do 6 weeks from now?

• What can I do today?


41


Appendix C: Acknowledgement of the contribution of agencies and departments

The following agencies and departments were consulted in the development of the APS Strategic

Workforce Analysis and Reporting Guide.

The Australian Public Service Commission thanks those agencies and departments who contributed

feedback and input, which has been invaluable in the development of this guidance.

APS Workforce Planning Working Group:

Attorney-General’s Department

Australia Agency for International Development

Australian Bureau of Statistics

Australian Communications and Media Authority

Australian Customs and Border Protection Service

Australian Security Intelligence Organisation

Australian Taxation Office

Department of Agriculture, Fisheries and Forestry

Department of Defence

Department of Education, Employment and Workplace Relations

Department of Families, Housing, Community Services and Indigenous Affairs

Department of Finance and Deregulation

Department of Foreign Affairs and Trade

Department of Health and Ageing

Department of Human Services

Department of Immigration and Citizenship

Department of Sustainability, Environment, Water, Population and Communities

IP Australia

APS Workforce Planning Practice Group:

Airservices Australia

Australian Centre for International Agricultural Research

Australian Competition and Consumer Commission

Australian Crime Commission

Australian Electoral Commission


42


Australian Federal Police

Australian Institute of Family Studies

Australian Institute of Health and Welfare

Australian National Maritime Museum

Australian Nuclear Science and Technology Organisation

Australian Pesticides and Veterinary Medicines Authority

Australian Radiation Protection and Nuclear Safety Agency

Australian Research Council

Australian Sports Anti-Doping Authority

Australian Transaction Reports and Analysis Centre

Australian War Memorial

Civil Aviation Safety Authority

Comcare

ComSuper

Department of Broadband, Communications and the Digital Economy

Department of Climate Change and Energy Efficiency

Department of the House of Representatives

Department of Infrastructure and Transport

Department of Innovation, Industry, Science and Research

Department of the Prime Minister and Cabinet

Department of Regional Australia

Department of Resources, Energy and Tourism

Department of Veterans’ Affairs

Family Court of Australia and Federal Magistrates Court

Food Standards Australia New Zealand

Geoscience Australia

Insolvency and Trustee Service Australia

Migration Review Tribunal and Refugee Review Tribunal

Murray-Darling Basin Authority

Museum of Australian Democracy at Old Parliament House

National Archives of Australia

National Film and Sound Archive


43


National Library of Australia

Office of Parliamentary Counsel

Office of the Australian Building and Construction Commissioner

Office of the Commonwealth Ombudsman

Productivity Commission

Safe Work Australia

The Treasury

Therapeutic Goods Administration