REMUNERATION AND RECOGNITION

Flexible and Competitive Remuneration

Finance has two CAs: one for general staff, which, while past its nominal expiry date, continues to meet the needs of Finance and those employees covered by it, and another separate one for COMCAR employees. Finance's CAs and AWAs are principles-based agreements that give our people the greatest possible flexibility in tailoring their terms and conditions of employment. Both types of employment arrangements aim to strike a balance between meeting the Department's business needs and meeting the individual needs and circumstances of each employee.

These agreements provide a broad-banded classification system that allows increases in remuneration based on individual skills and responsibilities (S&R). Individual remuneration can be reviewed annually or in response to changes in an individual's S&R, for reasons such as moving to a different job, increased responsibilities in an existing job, or completion of study or training. Under the agreements, staff can tailor their working arrangements for the greatest flexibility, balancing work and home commitments or meeting other specified needs. Both types of agreements also include a comprehensive performance management framework.

As at 30 June 2001, Finance's CA covered 38 per cent of the Department's employees, with the other 62 per cent of employees employed under individual AWAs. This does not include COMCAR staff, who are employed under a COMCAR-specific CA.

A new COMCAR drivers Certified Agreement 2001–04 covering both permanent and casual drivers was under negotiation at year's end. This process involved a Drivers' Representative Committee and facilitator elected by COMCAR drivers. The proposed agreement was not accepted when put to the vote. A new Drivers' Representative Committee will be elected to continue the negotiation process in 2001–02.

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Impact on Productivity

Finance's employment framework aims to improve our delivery of high quality outcomes, and to cover any increases in employment benefits from productivity improvements arising from employee and management initiatives. The results for 2000–01 give Finance confidence that it has met these aims. For example, all pay rises for the initial CA and subsequent increases in S&R remuneration were met within existing appropriations. Our remuneration arrangements continued to be competitive (as evidenced in Pay Increases in APS Agencies 2001, published by the Department of Employment, Workplace Relations and Small Business (DEWSRB) in April 2001). Finance also internally funded more than $3.8 million in annual performance pay to around 95 per cent of staff over each of the last four financial years. Salary payment and productivity have been linked to increases in the S&R component of individuals' salaries under the CAs and AWAs.

Further results for 2000–01 include:

• a further significant decrease in voluntary staff turnover, i.e. turnover initiated by the employee, including resignations, transfers, promotions, redundancies and retirement. This has fallen from 24 per cent in 1998–99 to 22 per cent in 1999–2000 to 15 per cent in 2000–01. Staff who initiate separation from the organisation by resigning, transferring to another organisation, or retiring early represented only 9.8 per cent. This compares favourably with a public sector average of 13.4 per cent, a finance industry average of 19.1 per cent and an Australian general industry average of 15.3 per cent. (Mercer Egan Cullen and Dell, Corporate Benchmark Monitor, June 2000);
  
  
• an increase in productivity (assessed through our performance management system), at both individual and organisational levels, with the proportion of employees rated unsatisfactory or borderline falling from almost six per cent to one per cent over the last four years;
  
  
• an average organisational performance that has been steadily trending up since 1997–98.

STAFF ACCESSING AWAs AND CAs 1998–99 to 2000–01

Recognition

An important part of Finance's culture is recognising and rewarding high performance. Finance uses a range of monetary and non-monetary reward mechanisms to do this. Monetary rewards are provided as annual performance pay for any and all employees who performed at a higher than competent level during the preceding 12 months. For the 2000–01 financial year, more than $4 million was paid to 664 employees to recognise and reward their extra contribution to the Department. Information about performance pay is set out in Appendix H.

Along with monetary rewards, Finance also regularly recognises the special contribution made by individuals to the work of the Department. Finance considers that recognition of excellence and endeavour within the Department is not only positive for those who gain recognition but has a flow-on effect for Finance as a whole. Staff have given positive feedback on these initiatives.