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Key APS capability trends and workforce challenges
Changes in the characteristics of the APS workforce in recent years, outlined in Chapter 2, have serious implications for the capacity of the APS to build and sustain its capability and to improve its productivity and effectiveness. In particular, internal and external changes in the APS have produced an APS workforce that is very different to the APS up to the early 1980s.
Age
A significant trend that affects the building of capability in the APS is the change in the age profile of the APS. In 2005, the median age was 42 years; in 1975 and 1995, it was 29 years and 38 years, respectively.
Employees aged 45 years and over, who will be eligible for retirement in the next 10 years, account for 40.4% of ongoing employees. In 1996, this group accounted for only 30.5% of ongoing employees. This is an important issue, which has also been raised in Chapter 2, and is likely to have a major impact on the APS over the next decade.
Classification
Today’s APS is characterised by streamlined classification structures and, increasingly, the entry point for many APS recruits is above the APS ‘base’ level, with employees now typically commencing at the APS 3–4 levels or higher and advancing fairly rapidly to higher levels.
In 1980, 52.4% of ongoing staff were at the APS 1–2 classification levels (and equivalents).2 By 2005, this had fallen dramatically to only 5.2% (down from 6.3% in 2004). This decline has been offset by proportional increases at the APS 3–4, APS 5–6 and EL classifications. SES staff numbers, as a proportion of total ongoing staff, have also risen from 1.1% in 1980 to 1.6% in 2005.
The changed classification profile of the APS demonstrates a long-term trend reflecting changes in skill requirements and the changing nature of work. This has resulted in a decrease in the demand for lower level, less skilled workers and a shift from some narrow technical skills to broader administrative and professional skills.
Qualifications
The APS workforce is increasingly becoming a graduate workforce. The employee survey confirmed a definite trend for a larger proportion of APS employees to hold tertiary qualifications, with employees at all levels being increasingly likely to have such qualifications, regardless of whether they are recruited through graduate entry programmes or general recruitment processes.3 Results from the employee survey show that around 46% of APS employees have a bachelor’s degree or higher qualification, with an additional 18% having another form of post-school qualification.
Furthermore, around two-thirds of new recruits possess graduate qualifications.4
While significant in themselves, the APS workforce changes documented in this report need to be viewed in the context of major changes the APS is undergoing in its structure, demography, governance and core activities.
Mobility
The APS has also seen significant changes in patterns of mobility, both into and out of the APS and between APS agencies.
The proportion of positions filled by engagements from outside the APS increased from 33.7% in 1995–96 to 47.6% in 2004–05. As described in Chapter 2, mobility rates have been quite variable over the past decade. The interagency mobility rate (which comprises promotions and transfers between agencies) has declined from 3.0% in 1995–96 to 2.0% in 2004–05.5 It is pleasing to note, however, that the 2.0% represents an increase on the figure reported in 2003–04 of 1.6%.
The optimum level of mobility varies between agencies, and depends on the circumstances of the organisation, including the nature of its business and its skill requirements. Agencies have to balance the benefits to their agency, and to the APS as a whole, of encouraging such mobility, with the need to manage turnover rates and ensure capability is developed and maintained within their agency.
Chapter 10, ‘Leadership, Learning and Development in the APS’, further discusses the importance of mobility in the context of leadership development.
Workforce challenges
The changing demographics of the APS discussed above are linked to many contemporary workforce challenges faced by APS agencies. The agency survey asked agencies whether they had faced any workforce challenges during 2004–05.
The most common workforce challenge identified by agencies was difficulty in recruiting people with required skills, other than as part of a formal graduate programme (reported by 76% of agencies—up from 62% of agencies in 2003–04). Recruitment as part of a formal graduate programme appeared to be less of an issue with only 11% of agencies reporting concern. The next most common workforce challenge identified by agencies was ensuring that employees’ skills and/or knowledge meet agency requirements (57%, down from 61% in 2003–04). A large number of agencies (48%) also identified the loss of valued mature-aged employees as a workforce challenge. The extent to which agencies reported workforce challenges varied considerably according to agency size.
Figure 8.1: Workforce Challenges, 2004–05
Source: Agency survey
Those agencies that reported experiencing difficulties in recruiting people with required skills were most likely to report encountering difficulties in recruiting people with financial management (55%) and accounting (55%) skills or skills in information technology (47%). These findings are consistent with the national skill shortage list for 2004, available on DEWR’s job outlook. Some of the specific initiatives identified in the MAC report on Managing and Sustaining the APS Workforce (see box below) address this (among other issues). Agencies also reported difficulties in recruiting people with skills in human resources, project management and contract management.
The Management Advisory Committee report, Managing and Sustaining the APS Workforce, addresses the workforce challenges facing the APS as it moves into a new labour market environment characterised by an ageing workforce, skill shortages, changing career patterns and a significant reduction in the number of new labour force entrants.
The report calls upon agencies to implement a series of significant initiatives in a range of areas. The following are some examples of the initiatives outlined in the report:
workforce planning
The Commission, in consultation with agencies, will develop and promulgate advice on best practice in workforce planning.
attracting and recruiting employees to the APS
A working group of agencies—guided by advice from the Commission on legislative requirements and better practice—will be formed to develop guidelines for streamlined recruitment processes. All APS agencies will explore base-level recruitment pathways targeted at potential employees without post-school qualifications, including how these may assist in building greater workforce diversity through the employment of more Indigenous people and people with disabilities.
recruiting and retaining employees with specialist skills in high demand
A number of agencies—with the support of relevant lead agencies—will work to establish APS-wide professional communities, initially of accountants, statisticians and ICT professionals, to promote learning and development and career planning in these areas.
smarter approaches to graduate recruitment and development
APS agencies will review their current graduate programme intake levels, making use of best practice approaches to workforce planning.
ensuring new employees have the necessary skills and knowledge to work effectively in the APS environment
APS agencies will act to ensure all new starters are given the induction and orientation in the Australian Government and APS processes they will need in order to perform effectively in their positions.
interagency mobility
The new APS employment portal will include a facility for APS and external organisations to advertise rotation and mobility opportunities and for employees to express interest in accessing such opportunities.
responding to the employment needs and career aspirations of the changing APS workforce
The new APS employment portal will feature an online registration channel for former APS and other mature-aged employees interested in accessing APS employment. APS agencies will also develop mature-aged workforce strategies and report back to MAC on progress.
investing in identifying and developing future leaders
MAC has issued a statement on expectations of the SES, covering the need for a greater APS-wide focus on leadership capabilities and development.
MAC report highlights
2 Excludes some ongoing employees in some specialist classifications who could not be assigned an APS equivalent classification.
3 Management Advisory Committee, Managing and Sustaining the APS Workforce.
4 The method used to calculate the proportion of employees with graduate or tertiary qualifications includes those with qualifications at bachelor degree and above. It excludes from the denominator those for whom no data was provided by agencies, and those who chose not to provide details of their highest educational qualification.
5 The mobility rate between agencies is calculated as the number of movements (promotions and transfers) between agencies during a financial year, divided by the average of the number of employees at the beginning and end of the period. It does not include non-ongoing transfers or temporary assignments or changes due to machinery of government changes.
