Key chapter findings

As has been pointed out in previous reports, many of the APS workforce challenges centre around the demographic challenge of the ageing of the APS workforce combined with the projected tightening of the labour market which is already leading to skill shortages in some areas—a situation which is likely to deteriorate further. These trends are all consistent with the issues identified in the recent MAC report, Managing and Sustaining the APS Workforce.³⁶

Whilst the vast majority of agencies are investing effort in workforce planning, many are still in the development phase when it comes to developing workforce planning policies. The survey findings documented in this chapter support MAC’s identification of an urgent need for systematic workforce and succession planning processes. The workforce planning actions specified in the MAC report, including the requirement that agencies report to MAC on their progress, should help to ensure that further progress is made on this front.

Despite substantial work in the area of performance management, the issues surrounding the credibility of agencies’ performance pay systems remain a cause for concern. The general decline from last year in employees’ views, and the emerging downward trend on some indicators surrounding the operation of agencies’ performance pay systems, indicates a continuing need for agencies to focus on developing a culture that is built around constructive workplace relationships. Managers would be assisted by the provision of further support mechanisms and development opportunities in the area of effective people management skills.

Given the tightening of the labour market and looming skill shortages, agencies are likely to face challenges in attracting the ‘right’ people with the ‘right’ skills. Consequently, it is important that agencies explore all possible avenues for developing and maximising the productivity of existing employees.

The analysis of this year’s data in terms of current theory relating to employee engagement is a preliminary attempt to add to the APS conversation around this complex issue.

The preceding discussion in this chapter refers to some of the apparent links between retention, job satisfaction, people management and productivity. Real or perceived, employees’ assessments of the quality of management, communication and input into decision-making, integrity, merit and diversity are crucial to their overall engagement. In addition, the role of managers, generally, and access to learning and development, cannot be underestimated.

The State of the Service survey data has been analysed with a view to identifying appropriate proxies for some of the identified ‘levers’ of employee engagement. Despite the limitations of this data, there seems to be considerable room for improvement in most of these areas. Of some concern is the overall finding that employee perceptions across a range of areas are either stable at less than ideal levels, or worse still, are declining (e.g. job satisfaction, merit, performance pay).

Given that the factors impacting most on employee engagement are organisation-based, and not demographic, it is important that agencies look to their own agency-specific data and information to gain an insight into employee engagement in their organisation. A sophisticated approach to workforce planning would seek to encapsulate strategies aimed at addressing these organisational factors.

The Commission will continue to explore employee engagement issues and will review its State of the Service survey questions for next year with this in mind.

36 Management Advisory Committee, Managing and Sustaining the APS Workforce.

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