Purpose 3
Develop our people, business model and system delivery
- Criterion 1: Deliver and maintain a harmonious and positive workplace culture where staff feel engaged, valued, skilled and capable.
- Criterion 2: Provide attractive employment conditions and recruitment frameworks that support current and future business needs.
- Criterion 3: Enhance staff skills and capabilities to build a more resilient, agile and highly capable workforce.
- Criterion 4: Maintain and develop a high performance management team with strong and effective leadership.
- Criterion 5: Maintain a health and safety program that focuses on developing a generative, interdependent safety culture.
- Criterion 6: Implement best practice business efficiencies and new technology systems to deliver improved services.
Overview
We are committed to creating and maintaining a positive and harmonious workforce and an operational service delivery model that delivers high-quality professional outcomes.
Detailed commentary
Our performance against stated measures and objectives in our Corporate Plan 2015–16 was as follows:
Criterion
Deliver and maintain a harmonious and positive workplace culture where staff feel engaged, valued, skilled and capable.
Result
Achieved
Our achievement of almost all Corporate Plan 2015–16 objectives is proof of the calibre of our staff and our high performance culture.
Employee statistics
Table 2 provides a comparative overview of our employment performance in 2014–15 and 2015–16. More information about our workforce is provided in Appendix C of this report.
| Indicator | 2014–15 | 2015–16 |
|---|---|---|
| Headcount | ||
| Total number of staff employed | 607 | 598 |
| Wages expense ratio | 5.9% | 5.9% |
| Diversity (as a percentage of the workforce) | ||
| Men | 35.6% | 36.3% |
| Women | 64.4% | 63.7% |
| Aboriginal and Torres Strait Islander | 1.2% | 1.5% |
| People with disability | 0.33% | 0.67% |
| Retention | ||
| Staff retention and turnover rate | 85.5% | 86.9% |
Workplace diversity
We value workplace diversity and are committed to drawing on the experience and skills of all employees, harnessing talent, changing cultures and challenging assumptions.
In 2015–16, we undertook the following key initiatives and activities:
- organised and supported events to raise diversity awareness, such as Harmony Day and NAIDOC week
- supported and attended events that focus on women in leadership, such as the Committee for Economic Development of Australia's 'Women in Leadership' series and the Public Sector Women in Leadership conference
- created a committee, led by the Acting Managing Director and comprising staff of varying levels and responsibilities across the organisation, to focus on how we will improve gender diversity at DHA in line with the APS gender equality strategy 2016–19.
The committee is exploring ways to increase the number of women in leadership positions, increase the number of men taking up part-time work and increase flexible working arrangements for staff at all levels.
More information about the diversity of our workforce is provided in Appendix C of this report.
Staff engagement survey
We conducted a staff engagement survey in the first quarter of 2015 and focused on implementing the resulting recommendations throughout 2015–16; both at a team and organisational level.
A focus on positive change management, regular communication, role clarity, upskilling managers and consistent business processes are just some of the outcomes that have contributed to a positive shift in culture throughout the reporting period. We will continue to work on improving our performance in these areas.
NOTES:
Total number of staff employed includes ongoing and non-ongoing staff. Excludes (28) inoperative staff (those on long-term leave or leave without pay), contract staff engaged through an employment agency, the Acting Managing Director, the Chairman of the Board and Directors of DHA's Board.
Diversity figures as identified and excluding agency staff, inoperative employees, the Acting Managing Director, Chairman of the Board and Directors of DHA's Board.
Staff retention and turnover rate calculated by dividing the inverting aggregated staff initiated separation rate by average head count for the previous four quarters.
Criterion
Provide attractive employment conditions and recruitment frameworks that support current and future business needs.
Result
Achieved
Remuneration and employment conditions
The DHA Enterprise Agreement 2012–14 continued in force for non-senior executive service (SES) staff while negotiations for a new agreement took place.
In December 2015, at the first vote, eligible staff voted in support of the proposed DHA Enterprise Agreement 2015 (EA). The new EA commenced on 18 January 2016. A full copy is available on our website.
This positive result ensures that our staff continue to be provided competitive remuneration and employment conditions. It also contributed to DHA being among the first wave of agencies to have finalised and implemented its EA.
Our attractive suite of employment conditions includes:
- structured on-the-job training
- learning and development opportunities
- flexible working arrangements
- employee assistance and wellness programs
- rewards and recognition, including financial performance bonuses for eligible staff
- generous leave entitlements.
Employment conditions for SES staff are set out in individual determinations made under section 24(1) of the Public Service Act 1999. Many of these conditions align with our EA.
More information about our remuneration and employment conditions is provided in Appendix C of this report.
Performance management and bonus payments
Our performance management framework is about achieving shared objectives in a way that helps the organisation reach its goals and individual staff members to grow and draw satisfaction from their work.
The main objectives are to:
- clearly link an individual's work with DHA's strategic and operational objectives
- provide a mechanism for considered formal and informal feedback between managers and staff on performance, achievement and constraints
- identify opportunities to support individual ongoing learning and development
- effectively identify and address underperformance.
All staff employed for three months or more are required to prepare a performance development agreement by cascading business objectives from the Corporate Plan, through business unit plans, to individual targets.
Performance is reviewed mid-year and at the end of the financial year to assess whether individual targets were exceeded, met or not met. This assessment informs performance bonus payments.4
More information about performance pay is provided in Appendix C of this report.
Other achievements
In the reporting period we also:
- enhanced our employee self-service system and online recruitment systems to provide new functionality and automated workflow
- commenced industry benchmarking of specialist positions to ensure we attract and retain specialists, such as property industry professionals, whose skills and expertise are fundamental to our success.
Criterion
Enhance staff skills and capabilities to build a more resilient, agile and highly capable workforce.
Result
Achieved
We are committed to developing the skills and knowledge staff need to undertake their current role and build capacity to meet future challenges. Table 3 provides a comparative overview of our learning and development performance in 2014–15 and 2015–16.
| Indicator | 2014–15 | 2015–16 |
|---|---|---|
| Percentage of salaries spent on training staff | 2.3% | 1.6% |
| Learning events and modules completed | 5,901 | 3,863 |
| Number of staff undertaking supported studies | 33 | 25 |
Formal learning and development
Staff can access a range of formal learning to develop their leadership skills, personal effectiveness and functional capability.
Programs are delivered via e-learning, face-to-face or a blend of both. They are presented by external providers and internal specialists, ensuring we have the right balance of market expertise and corporate knowledge to provide staff the personal development they need to be successful.
Key subject areas are as follows:
- Core skills: topics that are of benefit to employees at all levels, including corporate induction for new employees, customer service, writing skills and project management.
- Leadership and management: guidance and development for people managing people, including mastering feedback, managing change and effective performance management.
- Compliance: programs addressing content that is compulsory due to legislation or policy, including WHS, bullying and harassment, conflict of interest, fraud awareness, privacy, freedom of information (FOI) and public interest disclosure (PID).
- Functional skills: workshops and development activities that address skills required for particular roles, including fire wardens and first aid officers, or teams within DHA. Training is also sourced and/or developed to help with specific skills or particular needs as required.
Studies assistance
We encourage ongoing staff to undertake relevant formal study in approved fields.5 Where approved, staff are supported through financial assistance, paid study leave and/or paid exam leave. In 2015–16, we provided 25 staff with financial assistance totalling $82,968 and study leave.
Industry recognition
In the reporting period, we won an Australian Institute of Training and Development (AITD) National Training Excellence Award in the 'Best use of technology for learning' category for our physical security awareness module. We were also named as a finalist in the AITD's 'Best use of gamification or simulation' category for our conflict of interest module.
Criterion
Maintain and develop a high performance management team with strong and effective leadership.
Result
Achieved
A change in leadership occurred in November 2015, with the Board appointing Ms Jan Mason as DHA's Acting Managing Director for three months. Her term was later extended for nine months to enable recruitment of an ongoing Managing Director to occur.
The recruitment process for the position began in March 2016 and was ongoing as at the end of the reporting period. Appropriate processes will be followed, including seeking Cabinet agreement of the Board's nominated candidate.
The Forensic Review made a number of recommendations regarding our management structure, such as a flatter structure with more direct reports to the Managing Director and the recruitment of a specialist General Manager, Human Resources.
EY were engaged to undertake an independent review of our structure and, taking into account the recommendations of the Forensic Review, propose a revised model. This process was ongoing at the end of the reporting period, with changes expected to be made early in 2016–17.
Upskilling management at other levels across the business continued to be a focus throughout 2015–16, with staff undertaking a number of learning and development courses. Of note, our Mastering Feedback program was completed by 126 managers across 12 sessions in eight locations.
Criterion
Maintain a health and safety program that focuses on developing a generative, interdependent safety culture.
Result
Achieved
Our commitment to maintaining the highest standards of health and safety is reflected in our three-year WHS strategy, our policies, our Prevention First management system and our QMS framework.
Since implementing the Prevention First system in 2014, we have focused on promoting incident reporting to develop a 'just' safety culture (one where incident reporting is encouraged). Table 4 provides a comparative overview of our WHS performance in 2014–15 and 2015–16. It shows that while there has been a large increase in the number of incidents reported year-on-year, there was only a slight increase in those deemed to be WHS-related (177 versus 143 incidents). More information is provided in Appendix D.
| Indicator | 2014–15 | 2015–16 |
|---|---|---|
| Total incidents reported | 201 | 426 |
| WHS incidents | 143 | 177 |
| Staff | 76 | 86 |
| Contractors | 64 | 68 |
| Tenants and others | 3 | 23 |
| Total recordable injury frequency rate | 10.0 | 10.3 |
| Contractor and internal audits conducted | 1,054 | 962 |
| Desktop | 978 | 864 |
| Onsite | 76 | 98 |
| Safety interaction | 113 | 76 |
| Office inspections conducted | 92 | 81 |
| Workers compensation claims (accepted in financial year) | 6 | 10 |
NOTES:
TRIFR is the number of recordable injuries per million work hours.
Other significant achievements in the reporting period include:
- recertification for the second consecutive year against the Australian and international standard (AS 4801/ISO 18001: WHS management system) for our Prevention First system with no non-conformances identified
- being named as a finalist in Comcare's WHS Awards 'Prevention' category for our First Response program, which includes the SafeTCard duress device, face-to-face de-escalation training and e-learning field worker modules
- commencing a three-year psychosocial wellbeing strategy to improve mental health awareness and capability, and to introduce early intervention strategies to support a positive, healthy work environment.
More information about WHS is provided in Appendix D of this report.
Acting Managing Director, Ms Jan Mason, turns the first sod at our development, The Parade, in Glenroy, VIC.
Criterion
Implement best practice business efficiencies and new technology systems to deliver improved services.
Result
Achieved
We continued to build upon our QMS framework and obtain and maintain certification against the relevant standards.
During the reporting period, we:
- were certified against the international standard (ISO 9001 and ISO 9001:2008) for our QMS framework
- completed external ISO 9001 quality surveillance audits with no major non-conformances identified.
New management, internal audits and the Forensic Review all highlighted areas for improvement where our business process was not aligned with whole-of-government activities, was not being applied consistently across the organisation, or was not sufficient for current business needs.
This resulted in a major program of works to review and update policies and procedures, standardise templates and develop a corporate glossary identifying a 'single source of truth' to improve reporting. This has resulted in major changes to the way we manage credit cards and procurement, and sets our minimum information requirements in papers and submissions to enable informed decision-making by the accountable delegate.
We implemented new technology and continued to evolve our online systems based on direct and indirect feedback from stakeholders. Enhancements have been geared towards self-service and shifting all services to become digital by design (as defined by the Digital Transformation Office [DTO]). Examples of changes include:
- introducing a member preview PIN
- giving ADF members the ability to update dependant information online
- giving ADF members enhanced property entitlement visibility
- giving lessors the ability to request secondary property valuations online
- giving lessors access to view pest inspection reports
- providing lessors more information and communications on DHA's activities on a regular basis.
Our calibre in this field was recognised when we achieved a score of 4.28 (out of a possible score of 5) in the National Archives of Australia's Check-up Digital survey, ranking us sixth out of 165 agencies. This tool gauges digital information management maturity. We are justifiably proud of this outstanding result.
During the reporting period, we also commenced a structured roll out of new mobile technology. More information is included in the information technology and digital communication subsection in Section 3 of this report.
Analysis of performance against Purpose 3
While we achieved all KPIs and performance criteria related to Purpose 3, our activities were impacted by several environmental factors. Much of our activity in terms of staff training and business processes and systems was focused on 'future proofing' the organisation, to ensure we operate efficiently and effectively in the longer term.
The scope of works related to the Forensic Review was undertaken concurrent to business-as-usual activities, with no additional resources, and implementation of the recommendations had to be undertaken in a very short time period.
In total, 18 recommendations were fully implemented by 30 June 2016.6 Many related to business process and system improvement. While this is an outstanding result, it also meant other activities were placed on hold and deferred until 2016–17.
In addition, 15 of 34 recommendations were only partially completed because either:
- we did not receive input from an external consultant or stakeholder within the timeframe
- the works could not be meaningfully implemented in the short timeframe, or
- the works are part of a longer-term restructuring or transformational program we have elected to undertake beyond the recommendation.6
More information about the Forensic Review, including implementation, is provided in the external scrutiny subsection of this report in Section 3.
4 Staff employed under DHA's EA may be eligible for a performance bonus. Staff who have at least six months continuous service with DHA during the relevant appraisal cycle and are still employed on 30 June that year are eligible for a performance payment. Where a staff member was employed on a part-time basis, on paid or unpaid leave of more than 12 weeks, or commenced at DHA during the appraisal cycle, they may be eligible for a pro-rataed performance payment. Non-ongoing and casual employees are not entitled to performance pay.
5 Includes study, research, training or other educational activity conducted and recognised in Australia by a higher education provider or registered training organisation in selected fields of study relevant to DHA's business operations.
6 Recommendations were considered fully completed where they were addressed, deliverables including business change had been implemented, and there was an audit trail to substantiate it. Recommendations were considered partially completed where further work was required because either DHA did not receive final input from an external consultant or stakeholder, the works could not be meaningfully implemented in the short timeframe, or the works were part of a longer-term restructuring or transformational program.
