Enabling Outputs - Management of human resources

Workforce planning

During the last financial year the focus of the workforce planning group was to review programs and tools with a view to simplifying workforce planning in Customs. As an outcome of this review there is a trial currently being conducted of a strategic workforce planning program that will assist in developing a greater understanding of the workforce and the elements that impact it.

We also undertook our annual review of the National Strategic Workforce Plan to ensure that human resource strategies continue to closely align with the Customs corporate priorities. The plan provides an analysis of the workforce profile detailing demographics, and identifies trends and progress against strategies. Quarterly Workforce Statements that report against strategies are provided to the Executive.

Absenteeism was a particular focus during the year with a potential bonus payment being negotiated as part of the Customs Certified Agreement 2004-2007. Staff were eligible for an attendance bonus of $150 if the absenteeism figure for 2005 was reduced by one day or more when compared with the 2004 figure.

The national absenteeism figure reduced for the first time since 2001, largely due to a reduction in sick leave without a medical certificate, which was the main target category. The reduction, while showing a welcome trend, was not sufficient to enable the payment of the bonus.

A review of the Customs Trainee selection process was undertaken in October and November 2005 with the aim of:

• developing an updated list of characteristics on which to base the Customs Trainee selection process
• analysing the current process including screening/filtering mechanisms
• seeking views, possible improvements and best practice approaches from regional staff.
• The Recruitment Taskforce Steering Committee agreed to the 19 recommendations in the report on 1 March 2006. The recommendations included actions to update and improve the Customs Trainee recruitment process as well as other aspects raised by regions relating to advertising, marketing, training and support for Customs trainees once they are in the organisation.

The Recruitment Strategy Taskforce

The Recruitment Strategy Taskforce, formed in response to both the changing employment environment in Australia, and the need to update our recruitment processes to meet our future needs. Outcomes can be summarised as:

• developing an identified employer brand for Customs focusing on the benefits and attractions of working with us
• redesigning and reviewing Customs recruitment marketing tools
• improving and maximising the corporate profile of Customs to improve awareness of Customs as a career choice
• reviewing of the selection process
• adoption of employment arrangements to increase the participation of older workers in the Customs workforce
• modularising and revising the content and competencies of Customs Trainee program and development of an induction program for above-base grade entrants to the Customs workforce.

Staff turnover and retention

The rate of ongoing staff separating from Customs averaged 6.36 per cent in 2003-04, 6.68 per cent in 2004-05 and 6.73 per cent in 2005-06. Although separation rates have increased, they are within acceptable benchmark limits.

Analysis revealed significant numbers of separations at specific levels in specific regions, especially Customs Level (CL) 3 in South Australia and CL4 in Central Office.

Staffing profile

We planned for an estimated average staffing level⁵ of 4902 to enable the delivery of our Outcome. This figure was revised to 5076 in Portfolio Budget Additional Estimates. The average staffing level in 2005-06 was 4962.9.

Throughout 2005-06, Customs increased recruitment activity in response to a number of Government initiatives including Southern Ocean Maritime Patrol and Response, Container Examination Facilities, the Wheeler Report, Biometric Technology, Arming of Customs Patrol Vessels, Illegal Foreign Fishers and Sea Crew Movement Enforcement.

Customs total workforce⁶ at 30 June 2006 was 5578 . This compares to 5055 staff at 30 June 2005. Customs recruited 12 graduate trainees in 2005 and 2006. At 30 June 2006, Customs had staff in all States and Territories of Australia as shown in Figure 39.

Customs staff also hold posts in offices in Bangkok (1), Beijing (3), Brussels (1), Jakarta (1), Tokyo (1), and Washington (2). Some staff are temporarily assigned to capacity building projects in Papua New Guinea (4) and Solomon Islands (3) and Tonga (1).

⁵ Average Staffing Level is the average of the end of fortnightly Full-Time Equivalent (FTE) staff as paid by the organisation. Excludes employees on leave without pay for periods greater than three months.

⁶ Actual headcount

Figure 39: Staff employment category by location at 30 June 2006*

* Includes staff employed under the Public Service Act 1999, staff on leave, higher duties and staff on loan from other agencies. Figures do not include contractors. Numbers are headcount and reflect actual occupancy (derived from Customs Human Resource Information Systems). Financial statements report on staff numbers by full-time equivalent (FTE). Employees may be attached to one region and physically located within another.
# ACT figures include National Marine Unit and Indigenous Cadets.

Figure 40: Staff numbers by classification at 30 June 2006*

* Includes staff employed under the Public Service Act 1999, staff on leave, higher duties and staff on loan from other agencies. Figures do not include contractors. Numbers are headcount and reflect actual occupancy (derived from Customs Human Resource Information Systems). Financial statements report on staff numbers by full-time equivalent (FTE). Employees may be attached to one region and physically located within another.
^ Indigenous Cadets are funded by Australian Capital Territory (Central Office) for the term of their cadetship and located in regions, two each in New South Wales and Victoria and four in Queensland.
+ Senior Executive Service includes ongoing and non-ongoing SES employed under the Public Service Act 1999, including four non-SES staff on higher duties. It does not include the Chief Executive Officer who is a statutory office holder.

Figure 41: Staff classification and location at 30 June 2006*

* Includes staff employed under the Public Service Act 1999, staff on leave, higher duties and staff on loan from other agencies. Figures do not include contractors. Numbers are headcount and reflect actual occupancy (derived from Customs Human Resource Information Systems). Financial statements (in Note 15) report on staff numbers by full-time equivalent (FTE).
# ACT figures include National Marine Unit and Indigenous Cadets.
^ Indigenous Cadets are funded by ACT for the term of their cadetship and located in regions, two each in New South Wales and Victoria and four in Queensland.
+ Senior Executive Service includes ongoing and non-ongoing SES employed under the Public Service Act 1999, including four non-SES staff on higher duties. It does not include the Chief Executive Officer who is a statutory office holder.

Australian Workplace Agreements and Certified Agreement

Certified Agreement

Customs currently has a Certified Agreement (CA) in place which covers the pay and conditions for the majority of employees. This agreement will remain in place until October 2007.

WorkChoices

The Workplace Relations Act 1996 amendments (WorkChoices) commenced on 26 March 2006. We have refined the individual Australian Workplace Agreements (AWAs) to ensure that they are WorkChoices compliant. There is no immediate impact on the operation of the Customs CA.

Figure 42 highlights the current salary rates for our employees as covered in the CA.

Figure 42: Staff classification, Australian Public Service equivalent level and salary range at 30 June 2006^*

* Salary range includes minimum and maximum salaries available under the Customs Certified Agreement 2004-2007; Australian Workplace Agreement (AWA) salaries are not included.

Australian Workplace Agreements - Senior Executive Service (SES)

All ongoing SES employees have remuneration arrangements agreed through AWAs. The CEO and Deputy CEOs who represent an informal remuneration committee determine salaries and performance pay. They are broadly within three bands representing the three classification levels.

Performance pay may take the form of an annual bonus, bonus payment(s) during the cycle or movement to a higher salary. Such payments recognise outstanding contribution to particular work outcomes. The performance pay generally accords with Certified Agreement employee performance assessment and feedback outcomes.

During the past year, 70 per cent of our Senior Executive staff received performance pay. The aggregate amount of performance pay for Senior Executives was $285 163.

Non-Senior Executive Service

As at 30 June 2006 there were 122 non-Senior Executive staff on AWAs. The majority of these were Customs Directors (Customs Level 5). The conditions of employment for staff who are not on individual agreements were governed by the provisions of the relevant Customs CA.

Figure 43: Senior Executive Service classification and gender at 30 June 2006*

* The amount shown for each band represents salary levels. The SES staff who received or were due to receive total remuneration of $130,000 or more (including superannuation and other non-salary benefits) are listed in the Financial Statements on page 223. Staff shown above represent substantive ongoing SES at 30 June 2006. It does not include staff not employed by Customs and does not include the CEO, who is a statutory office holder.

Performance management

We implemented a Performance Management Framework that identifies how individual components of performance management interact across a performance spectrum ranging from positive reinforcement through rewards and recognition to the more negative aspects of managing underperformance. A key tool for assessing the appropriate intervention is through the performance assessment and feedback (PAF) process. PAF provides a structured approach to discussing, recording and measuring expectations. A link between individual performance and business Outputs is part of the process as well as individual development needs. This ensures that staff have the skills they require to do their job.

The 2005-06 PAF cycle was the second performance cycle in which all agreements were established and managed online. Participation in the process is now at 97.8 per cent.

Of the 4 795 employees eligible for performance pay at the end of 2005-06, 308 (6.4 per cent) achieved a rating of performed above agreed requirements. Figure 44 shows the distribution by classification.

A range of communication and support materials were utilised to facilitate the online process, including quick reference guides, tutorials, frequently asked questions and a help desk.

Figure 44: 2005-06 Performance Assessment and Feedback Scheme ratings – performed above agreed requirements

Figure 45: 2005-06 performance pay outcomes (Certified Agreement)

* Not all staff who performed above requirements received a performance bonus. Some received an adjustment in salary.

Figure 46: 2005-06 performance pay outcomes (AWA holders)

Workplace diversity

We continued to promote the Workplace Diversity Policy and Workplace Harassment Policy and reinforce the roles and responsibilities of all employees through:

• induction training sessions, all-staff emails and articles in Customs News
• mandatory on-line learning modules on Australian Public Service (APS) Values and Code of Conduct
  • Workplace Discrimination and Harassment
  • Legal Compliance
  • Workplace Discrimination and Harassment
  • Email and the Internet
• non-mandatory on-line courses on Performance Management and Diversity and Cultural Awareness
• the development of a bullying brochure.

We developed an Indigenous Recruitment and Career Development Strategy to improve representation rates of Indigenous Australians in Customs. This will provide Indigenous employees with development and support opportunities to enhance their career progression. The Indigenous Recruitment and Career Development Strategy consolidates a range of activities that we have been undertaking over recent years while also identifying several new approaches. This is to be launched in July 2006.

The three Indigenous entry-level trainees that were recruited in October 2005 as part of a pilot Indigenous Entry-level Recruitment Program successfully completed their studies and are currently working in Customs. We participated in the evaluation of the pilot program and began planning to recruit further trainees under this scheme. It is expected that more trainees will start employment in 2007.

We recruited six cadets under the National Indigenous Cadetship Project in 2006 taking our total cadet numbers to eight as at 30 June 2006. In addition two other cadets successfully completed their cadetships in 2005 and they have secured ongoing employment in the APS, one in Customs. One Indigenous Graduate was also recruited from the APS Indigenous Graduate Program in 2006 to join Customs Graduate Trainee program.

We continue to promote a range of diversity events such as the International Day of People with a Disability and National Aboriginal and Islander Day Observance Committee (NAIDOC) week activities.

Figure 47 shows the representation of equity and diversity groups in Customs. There was a slight increase in the proportion of female employees and those born overseas but slight decreases in other groups compared with staffing figures as at 30 June 2005. These figures rely on voluntary self-identification and compliance levels vary from year to year.

Figure 47: Representation of equity and diversity groups by staff classification at 30 June 2006*

* Includes staff employed under the Public Service Act 1999, staff on leave, higher duties and staff on loan from other agencies. Figures do not include contractors, consulting or Acting Officers of Customs. Numbers are headcount and reflect actual occupancy (derived from Customs Human Resource Information System).
~ Number of staff born outside Australia.
^ Indigenous Cadets are funded by Australian Capital Territory (Central Office) for the term of their cadetship and located in regions, one each in Australian Capital Territory, Western Australia and New South Wales and three in Queensland.

Code of conduct

This year we focused again on integrity and ethics through Customs trainee courses and the Customs graduate trainee induction. In addition, the availability of online learning assisted in better awareness of the APS values and Code of Conduct. Instances of code of conduct breaches have increased slightly.

We conducted 73 investigations on suspected breaches of the Code of Conduct under Section 15(3) of the Public Service Act 1999 (15 were carried over from the previous financial year). At the end of the year, 67 investigations had been finalised and 12 were continuing. Of the finalised investigations, breaches were found in 57 cases.

In the majority of cases, the alleged breaches involved more than one element of the APS Code of Conduct.

Investigations of employee misconduct

Our Internal Affairs Unit is responsible for the investigation of all complaints of serious misconduct and suspected criminality against our employees. The Unit provides lectures on integrity and internal fraud control to all Customs new members and to all employees attending training and development courses. The Unit addresses work groups throughout the organisation to remind staff of their reporting obligations.

The Unit investigated 118 complaints of serious misconduct and/or criminality against our employees and 146 miscellaneous matters (see Figure 48). This represents an increase on previous figures, which may be attributed to:

• an increase in employee preparedness to report their concerns/suspicions
• improved technology to assist in computer audits.

Of the 118 complaints received, 56 were substantiated, 50 were not substantiated, 10 are still the subject of ongoing investigation and two matters were referred to other agencies. Disciplinary action taken on the 56 substantiated matters ranged from counselling to termination of employment (See Figure 51).

Of the 118 complaints received, 91 were deemed to involve fraud as defined by the Commonwealth Fraud Control Guidelines (89 Internal Frauds and two External Frauds). Of these, 50 were substantiated, 32 were not substantiated, seven are still the subject of ongoing investigation and two were referred to other agencies.

Figure 48: Breaches of the APS Code of Conduct found in 2005-06

* In some instances more than one breach was recorded for the same case. Sanctions took into account the circumstances and seriousness of each breach

Figure 49: Sanctions imposed for breaches of the APS Code of Conduct in 2005-06

* In some instances more than one sanction was imposed for the same case.

During 2005-06 substantiated fraud cases related to:

^* One of which was External Fraud
^> External Fraud

Figure 50: Trends in investigations, security checks and lectures

Figure 51: Action taken on substantiated complaints of serious misconduct and/or criminality 2005-06

Security

Customs experienced an increase of almost 50 per cent in the number of security clearances granted for ongoing and non-ongoing employees (1480, up from 1000 the previous year). However, the percentage of security clearances processed for contractors fell by 14 per cent (480, down from 577 the previous year).

Vetting service providers were used to assist processing security clearances during peak periods, such as Southern Ocean Maritime Patrol Response Unit and National Marine Unit recruitment processes.

Customs continued with its delivery of the Server Room Hardening Project to further enhance the protection of Information and Communications Technology and ensure compliance with the physical security standards set out in the Protective Security Manual and Australian Communication and Information Security Instructions (ACSI33).

We commenced the Maritime Security Identification Card (MSIC) plan on 31 January 2006. Customs MSIC scheme is to provide government agencies operating within Maritime Security Zones a service to issue security identification cards identifying employees who comply with the Maritime Transport and Offshore Facilities Security Amendment Regulations 2005 (Regulation 6.07a(1)a).

Nine Customs officers have successfully completed the Canberra Institute of Technology (CIT) Diploma of Security and Risk Management, developing a strong security knowledge base within the section. Nationally 85 per cent of Customs staff completed the annual online security awareness training, which is linked to the performance assessment and feedback process.

Learning and development strategies

Work this year has focused on building the capability of staff through the development of a

number of core technical skill on-line programs and ‘Leading People at the Frontline’.

National Human Resource Development (NHRD) team in conjunction with line areas have developed a series of on-line programs that staff are able to access via a learning management system. The programs have been developed using a three-step assessment and development methodology to align training courses against competencies. Some of the programs designed this year include:

• Responsible Recordkeeping
• Basic Security Awareness
• Introduction to Intelligence
• Valuation 1
• Origin
• Assurance Techniques 1
• Traveller Search Module/ Integrated Analysis Tool (IAT) systems training
• Tariff 1
• General Examination and Search.

The newly developed ‘Leading People at the Frontline’ program for supervisors will be piloted in a number of regions in the 2006-07 financial year. The program is designed to equip frontline supervisors with key people management capabilities in areas such as leadership, team building, applying policies and practices related to human resource management and change management. The program is framed around the Integrated Leadership System (ILS) and embeds the APS Values and Code of Conduct, working with diversity and organisational health principles that underpin effective leadership in the APS.

Additionally, NHRD has worked with training areas such as investigations and operational safety to bring national qualifications and competencies into the Customs Registered Training Organisation. This ensures a quality training framework is applied to staff training and development in these critical skill areas.

Occupational health and safety performance

Occupational Health and Safety (OH&S) can be a key driver of high organisational performance by supporting the achievement of business outcomes. Customs OH&S Management System outlines how OH&S is managed in the workplace and it includes a cycle of continuous improvement. Details of the activities undertaken to improve our OH&S performance and details of compliance with section 74 of the Occupational Health and Safety (Commonwealth Employment) Act 1991 are at Appendix A.

We undertake a variety of operational tasks in diverse work environments that present many OH&S hazards not faced by most APS agencies. This requires active management and risk assessment to eliminate the hazards or reduce their risk. Some of the specific OH&S challenges for Customs in 2005-06 include:

• the introduction of operational safety approaches including training staff in the use of force
• establishing medical, physical fitness and psychological standards for staff selected to undertake these roles
• OH&S issues associated with safe training in the handling and storage of weapons, ammunition and other accoutrements
• increasing maritime patrols to detect and deter illegal foreign fishing and other activities, including processing and guarding crewmembers that may have a communicable disease such as tuberculosis
• planning for the potential outbreak of pandemic flu
• introducing new technology to help detect a range of illicit substances including explosives and precursor chemicals used to manufacture weapons or illegal drugs
• increasing our role in counter terrorism related activities domestically and overseas.

Despite these challenges we have realised some important improvements in OH&S performance, including:

• the number of accepted workers’ compensation claims has dropped from 241 in 2003-04 to 194 in 2004-05 despite an increase in staff numbers from 4806 to 5059. The number of claims per 100 staff for the same period dropped from 5.01 to 3.81. In 2005-06 claim numbers have risen to 205 but claims per 100 staff have dropped further to 3.67 given the further increase in staff numbers to 5581. Note that the 2005-06 claim details are subject to further development.
• the number of accepted Psychological Injury claims dropped from 18 in 2003-04 to eight in 2004-05 and four in 2005-06 and the estimated costs of these claims have dropped dramatically. This improvement has resulted from implementing several strategies to raise awareness of the causes and early symptoms of psychological injuries, including developing a training session on mental health and a Managers Toolkit, and by focussing on earlier and more effective rehabilitation support.

The performance of Customs in relation to OH&S matters is outlined in figure 52.

Figure 52: OH&S performance indicators

* As at 31 July of that year.
^ Number of staff who successfully returned to employment following the implementation of a return to work plan.
# Annual absenteeism rates are calculated at the end of the March quarter.