Background · Web viewFramework for Executive Classifications Senior Executive Service Background2 The key principles of Approved Procedure 2 - Senior Executive Service2 Introduction2

Framework for Executive Classifications

Senior Executive Service

Background.................................................................................................................................... 2The key principles of Approved Procedure 2 - Senior Executive Service...........................2

Introduction..................................................................................................................................... 2Key components and principles...................................................................................................... 3The classification system................................................................................................................ 3

Classification tool................................................................................................................ 4The process and requirements....................................................................................................... 5

Step 1: Quality standards and processes............................................................................6Step 2: Agency request....................................................................................................... 6Step 3: The Commission validation and referral to consultant............................................7Step 4: Mercer assessment................................................................................................. 7Step 5: The Commission decision and advice....................................................................7

Repeated requests......................................................................................................................... 8Advertising and filling positions......................................................................................................8Advice and assistance.................................................................................................................... 9External providers........................................................................................................................... 9Attachment 1................................................................................................................................ 10

Executive classification cover sheet..................................................................................10Attachment 2................................................................................................................................ 11

Executive classification checklist.......................................................................................11Attachment 3................................................................................................................................ 12Job analysis interviews................................................................................................................. 12

This publication can be copied in whole or part with due acknowledgement. It is on www.wa.gov.au. Copies are available in alternative formats on request.

Disclaimer: While every attempt is made to ensure the accuracy, currency and reliability of the information in this publication, changes in circumstances over time may impact on the veracity of the information.

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Page 1 of 13 Framework for Executive Classifications

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BackgroundUnder Section 53(3) of the Public Sector Management Act, 1994 (PSM Act), employing authorities may classify senior executive service positions within their agencies in accordance with Approved Procedure 2 - Senior Executive Service.

The objectives of Approved Procedure 2 - Senior Executive Service is:

to ensure all senior executive officer positions are appropriately classified in a consistent manner across the public sector

to maintain the integrity of the aims and objectives of the senior executive service through the classification of senior executive officers.

The key principles of Approved Procedure 2 - Senior Executive ServiceEmploying authorities shall classify senior executive officer positions in accordance with the approved classification system.

Agencies are not able to classify senior executive officer positions which are in the Special Division of the Public Service. Requests to classify or vary such positions are to be forwarded to the Public Sector Commission, who will refer them to the Salaries and Allowances Tribunal for consideration.

Employing authorities shall forward all proposals for the payment of temporary special allowances above Level 8; and the creation, variation and/or reclassification of positions above Level 8, to the Commission for assessment and endorsement.

Positions the subject of a specified calling and Medical Officers classified by the Department of Health and Legal Officers classified by the Department of the Attorney General or the Office of the Director of Public Prosecutions, are exempted from this requirement.

IntroductionThis framework provides guidelines for agencies preparing classification proposals for positions above Level 8. The framework also provides the requirements and the standards agencies and the Commission are expected to meet.

The framework provides an overview of:

the key components and principles behind the framework for classifying positions above Level 8

a description of the approved classification system

the process and requirements for classifying positions above Level 8

where further assistance and information can be obtained.

This framework aims to:

clarify the roles and responsibilities of the Commission and agencies

provide consistency in documentation and assessment, and a streamlined process that will increase efficiency and reduce the time taken to process approvals


improve the decision making process which is based on quality standards that ensures integrity and impartiality in the classification process

maintain the relationship between the Government's collective interests and the needs and expectations of agencies.

Key components and principlesThe key components of the framework for classifying positions above Level 8 is the:

quality standards and processes - processes for classifying positions are clear, unambiguous and stream-lined and incorporate standards that express the needs of government, agencies and individuals

agency submission - agencies prepare a proposal for classification review by following the checklist provided and providing all necessary documentation

Commission’s validation and referral to consultant - the Commission ensures that all relevant information is provided by agencies and facilitates a systematic and independent assessment of an agency's proposal, which includes an analysis of the relevant position using an approved classification tool

Commission’s decision – the Commission will consider the proposal and recommendation of the consultant before making a decision and advising the agency accordingly

continuous improvement - the Commission and agencies seek and provide feedback on the Framework to ensure continuous improvement in the processes and maintenance of the integrity of the system.

The underlying principle of the framework is to ensure equity and consistency within and across agencies by following the agreed processes and standards. The basic principle is that work of equal value should receive equal pay.

The classification systemThe primary aim of the classification process is to provide a means of applying appropriate and equitable rates of remuneration to employees performing various types and levels of work, taking into account the organisation in which the work is performed and the public sector as a whole.

The process of assessing the classification level of a position involves:

consideration of the work value of the position and in the case of reclassification, any significant changes in work value

comparison of both internal and external relativities, such as positions of similar work value within the agency and the Western Australian public sector, with internal taking precedent over external. External comparisons should be examined more closely than simply reviewing the JDF

consideration of the Mercer CED job evaluation system.


The work value of a position is established by considering:

the type and nature of work performed

the skills required to carry out important aspects of the work

responsibilities required of the position

conditions under which the work is performed.

For the reclassification of a position, it will be necessary to establish that there has been a significant, demonstrable and ongoing change in the work value. Care should be taken not to confuse work value with work volume.

Classification toolMercer CED is the classification tool approved for the classification of positions above level 8. It is to be used as a guide to the classification level, in conjunction with the principles outlined above.

The Mercer CED license in Australia is held by Mercer (Mercer Australia Pty Ltd). Refer important note under external providers on page 12.

The Mercer CED job evaluation system expresses the worth of a position in work value points, which are determined by assessing eight sub factors that are based upon a systems approach to understanding jobs. This approach considers all jobs in terms of:

the inputs required for the position

the processes involved in carrying out the functions of the job

the outputs required for the position.

The eight sub-factors form three primary factors, which are:


A job analysis process is used to assess a position, and a numerical value assigned, to each of these factors. The total score is then compared to the points required for each classification level.

The process and requirementsThe Commission has engaged Mercer, an internationally recognised company, to assess the classification of senior executive service jobs. This is expected to lead to benefits for agencies including:

increasing the objectivity, transparency and consistency of classification assessments

simplifying and streamlining the process.

The proposal to outsource executive classifications is also expected to reduce direct and indirect costs for agencies, as there will no longer be a need to independently engage consultants to prepare classification requests. Rather, classification requests received from agencies will be referred by the Commission to Mercer, which will undertake the classification and work value assessments for executive positions within the WA public service. This may include the creation of new positions, reclassification requests for existing positions and temporary special allowances (TSA).

The overall process and criteria for assessing positions will be the same for each proposal (TSA, classification or reclassification). The assessment process is illustrated below. The steps of this process are described in greater detail on the following pages.


The cost of engaging Mercer will be recouped from agencies. However, it is expected that there will no longer be a need for agencies to independently engage consultants to prepare classification reports. Classification requests received from agencies will be referred by the Commission to Mercer who will undertake the classification and work value assessments for executive positions within the WA public sector. The cost incurred by agencies is expected to be less than is currently incurred in the preparation of classification reports due to the economies of scale achieved under the Public Sector Commission contract. It should also be noted that the information to be provided by agencies is less onerous.

Step 1: Quality standards and processesResponsibility for ensuring that the processes are clear, unambiguous and stream-lined rests with the Commission. The Commission will:

develop the framework and processes

promulgate them across the public sector

consult and provide advice to agencies.

Agencies have a responsibility to understand the framework and processes.

Step 2: Agency requestAgencies will be required to submit a request for classification review by following the checklist provided, which will ensure that the documentation is complete and the request expedited.

Agencies are encouraged to discuss proposals with the Commission before they are submitted to assist in ensuring that all relevant issues are covered. It is also suggested that all proposals be submitted through an agency’s HR division/branch to ensure an appropriate level of quality control.

In preparing the proposal, agencies should provide the following information for each position:

a copy of the proposed JDF, and in the case of a request for reclassification, the existing JDF

a summary of the work value considerations; and in the case of a reclassification or TSA a summary of the significant changes to the work value

an indication of the proposed classification level of the position

comparison of the position with other positions of similar work value, including copies of JDF’s (both internal and similar external relativities should be considered and compared)

a copy of the agency organisational chart, including reporting structure (current and proposed) and details of the reporting relationship of the position

budget details for the agency and position under review (operating and capital expenditure, including salaries)

FTE details of agency and position under review

the impact on other positions within the agency and potential for flow-ons

where a proposed restructure involves several positions, the impact on the senior executive service classification profile of the agency

a copy of the agency strategic plan or annual report (website links are accepted)


a completed ‘Executive classification cover sheet’ (attachment 1)

a completed ‘Executive classification checklist’ (attachment 2).

In most cases, either the current position holder of the subject position or the position’s Manager will be interviewed by a Mercer consultant. A guide to areas typically covered during the interview is included in attachment 3.

Agencies will not be required to apply a classification tool.

Step 3: The Commission validation and referral to consultantOn receipt of the proposal, the Commission will acknowledge receipt of the proposal.

However, if the documentation is not complete, the Commission will return the proposal to the agency, indicating the areas where additional information is required.

Upon being satisfied that all necessary information has been received, the Commission will refer the proposal to Mercer for assessment. The Commission will also:

determine if there are any other relativities that should be considered for the position concerned

identify any issues of concern regarding the agency's recommendation.

Step 4: Mercer assessmentMercer will:

review submissions and any available historical or contextual information

obtain any additional relevant information from:

o agency chief executive officer or nominated representative

o current position holder and/or supervisor (if required)

consult with the Commission or SAT (as required) regarding:

o comparisons

o flow-ons and implications for public sector

o any other factors

conduct a work value assessment using the Mercer CED evaluation tool;

undertake peer review/moderation of each work value assessment; and

complete the assessment report and recommendations and refer to the Commission for consideration.

Step 5: The Commission decision and adviceWhilst assessment advice will be sought, the Commission will continue to make the final decision regarding the determination and in this regard may take into account factors that are additional to the assessment report.


The Commission will consider the recommendation, taking into account:

the agency's submission

the assessment and recommendation of Mercer.

The Commission will notify the agency of the decision and provide reasons in the event that the requested level of classification is not supported.

If the changed classification requires the approval of the Salaries and Allowances Tribunal, the Commission will make their recommendation to the Tribunal and advise the agency of the outcome when known.

With the exception of positions covered by the Salaries and Allowances Tribunal, the Commission will endeavour to respond to agencies proposals within six weeks of receipt of full and complete documentation.

At the time of advising the agency of the decision, the Commission will also invoice the agency for the external assessment. If an agency fails to pay the invoice amount, future requests for classification assessments will not be processed by the Commission.

Repeated requestsWhere a classification request was not supported by the Commission within six months of this document coming into effect, a subsequent request for the same position should not be made within 12 months after the date of the decision, unless the proposed request is sufficiently different from the request that was not supported.

Furthermore, given the clarification of the requirements in this framework, requests for reclassification are not to be repeatedly presented if rejected. It is inappropriate, given the thoroughness of this process, that a request for the reclassification of the same position should be re-presented frequently unless significant and demonstrable change has occurred in the agency that directly impacts on the classification of the position.

Advertising and filling positionsChief executive officers are required to have approval from the Public Sector Commissioner prior to advertising and filling any senior executive officer position. This includes all reappointments, and proposals to transfer or second senior executives within the public sector.

If you will be seeking to advertise and fill the position under review, please indicate your intention on the ‘Executive classification cover sheet’.


Advice and assistanceProposals seeking approval for the classification or reclassification of positions above Level 8 should be forwarded to:

Public Sector Commission Level 1 Dumas House,Locked Bag 3002, West Perth WA 6872

The Commission is available to assist agencies with queries and to clarify issues as they arise. Initial contact should be directed to the Public Sector Commission at [email protected] or (08) on 6552 8647.

External providersFollowing the engagement of Mercer, the need for agencies to independently engage an external consultant to prepare classification proposals should be minimised. However, should an agency decide to seek the services of an external provider, any costs incurred are to be borne by the agency. These will be additional to the costs associated with the assessment process conducted by the Commission which will be recouped from agencies.

The Mercer CED tool is licensed by Mercer. No other consultant is licensed to use nor is trained in the Mercer job evaluation tool. To ensure ongoing quality assurance only Mercer consultants will be engaged to provide the classification assessments for senior executive service positions within the sector.


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Attachment 1

Proposal to Public Sector Commission

Executive classification cover sheet

Position details

Position title Position no.

Agency Current level

Branch

Reason for assessment (New position, occupant initiated review, restructure)

Supporting information

All information as required by the checklist is attached

Yes

No

In the event that the request for classification is supported, approval is sought to advertise and fill the position

Yes

No

Contact person Position

Telephone Email

I support this submission for classification

Chief Executive Officer/Director General (Signature)

Date


Attachment 2

Proposal to Public Sector Commission

Executive classification checklist

A copy of the proposed JDF, and in the case of a request for reclassification, a copy of the existing JDF

A summary of the work value considerations; and in the case of a reclassification or TSA a summary of the significant changes to the work value

An indication of the classification level proposed by the agency

Details of the comparison of the position with other positions of similar work value, including copies of JDF’s (both internal and similar external relativities should be considered and compared)

A copy of the agency organisation chart, including reporting structure (current and proposed) and details of the reporting relationship of the position

Budget details for the agency and position under review (operating and capital expenditure, including salaries)

FTE details of agency and position under review

An explanation regarding the impact on other positions within the agency and any potential for flow-ons

Where a proposed restructure involves several positions, the impact on the SES classification profile of the agency

A copy of the agency’s strategic plan or annual report (or website links)

A completed ‘Executive classification cover sheet’

Approval has been sought to advertise the position in the event that the proposal is supported


Attachment 3

Job analysis interviewsThe following areas of focus will generally be included during the interview with a Mercer Consultant. Be aware that:

the areas covered will depend on the nature of the role and so not all areas will necessarily be covered

the areas covered relate to the requirements of the position, and may not necessarily relate directly to the current position holder

1. Primary objective(s)This will relate to the main purpose of the job, that is what the position does and why (outcome).

2. Major accountabilitiesThese are the major areas of the work that is performed, and at a high level cover what is done and why.

In the case of a reclassification request, it will be important to be able to discuss:

which of the major accountabilities are additional to the original position

the functions and accountabilities that have been removed from the position; and

the reasons for the changes.

3. Organisational environmentThis includes:

a) the role and objectives of the business unit in which the position operates, and the role of the position within the unit including details of the most important features of the position.

b) details of staff functions managed by the position, their primary objectives, as well as any accountability for external parties (for example, contractors or sub- contractors providing major services to the organisation)

4. Key negotiations/communicationsThese include the key positions, committees, organisations or groups that the position negotiates or otherwise has contact with inside and outside the organisation as part of the role. It will be important to cover the purpose of the contact, for example, to act as principal negotiator for the organisation, to convince government or external parties of funding priority compared to other divisions/agencies, to represent the organisation at a state-wide or national level.


5. Decision makingWhat kind of decisions does the position make, without referral to a more senior position. This will need to indicate whether there are policies/guidelines/rules or other protocols to guide decision making.

What kind of decisions does the position make, after consultation with a more senior position or others. What kind of decisions are referred to a more senior position?

6. ChallengesExamples of at least three challenging aspects of the role. These may be short or long term, and must be related to the job (not the person). They might involve client or stakeholder demands, cultural or organisational change programs, technology dependent programs, developing new approaches that have a state or service-wide effect.

7. Knowledge, skills and experienceThis includes the knowledge, skills and experience that are essential for effective/competent performance in this position. It also includes any formal qualification/certification that may be required or equivalent experience.

8. Position impactMercer will need to understand if the position is responsible for managing resources, including the type of resources dollar value for the current financial year, and an average over a three year period – ideally the previous, current, and following year’s budget estimate. It also includes details of any capital expenditure or revenue the position holder is required to directly control. Resource budgets include staff salaries even though these may be centrally allocated and funded.

9. Other informationAny other information that may help the Mercer consultant understand the nature and scope of the position.


Documents

Background · Web viewFramework for Executive Classifications Senior Executive Service Background2 The key principles of Approved Procedure 2 - Senior Executive Service2 Introduction2