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Australian Public Service Strategic workforce analysis and reporting guide

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APS Strategic Workforce Analysis and Reporting Guide


Contents

Strategic workforce analysis and reporting explained..................................................................................2

The basis for undertaking strategic workforce analysis and reporting.................................................2

Undertaking effective strategic workforce analysis and reporting..........................................................2

Identifying and understanding workforce risks...............................................................................................3

Monitoring workforce data that is relevant to business delivery........................................................3

Analysing workforce data to identify any workforce issues that could pose risk to the delivery of business outcomes and outputs..................................................................................................7

Consulting the business to assess potential impact of workforce issues on business delivery........................................................................................................................................................................................... 8

Reporting to key business stakeholders on the workforce and any associated workforce risks, to inform organisational decision making towards mitigating these risks.........................8

Managing workforce risks.......................................................................................................................................12

Identifying strategy and initiative options to address workforce risks.........................................13

Setting aspirational targets................................................................................................................................13

Benchmarking..........................................................................................................................................................13

Measuring, evaluating and adjusting.............................................................................................................14

Appendix A: Common workforce metrics.........................................................................................................15

Appendix B: Developing SMART goals (in the context of strategic workforce reporting)..........38

Appendix C: Acknowledgement of the contribution of agencies and departments.......................40

APS Strategic Workforce Analysis and Reporting Guide


Glossary

Term Meaning (within the context of the APS Strategic Workforce Analysis and Reporting Guide)

Aspirational target Target set within the context of an organisation (in isolation from other organisations) that indicates the desired state of the workforce that will enable it to effectively deliver its business outcomes and outputs.

Benchmarking Comparison of workforce metrics with similar organisations, to gauge the organisation’s performance within a broader context.

Critical job role Job roles which are key (or may become key to the functions of the organisation), are hard to fill, impact on the organisation’s business outcomes if left vacant, require a long time to develop the required skills, have a large number of staff (critical mass), or require niche or specialised skills.

Forecasting Estimation of what the workforce will look like at future time points, based on consideration of past trends and, taking a more complex approach, the impact on the workforce of external factors such as labour market forces.

Job family See ‘Occupational grouping’.

Lag indicator Workforce metric that provides information about the past.

Lead indicator Workforce metric that informs future activities.

Occupational grouping A grouping of jobs that have similar skill and capability requirements.

Strategic workforce analysis Examination and interpretation of workforce data, within the context of relevant internal and external environmental factors, to identify workforce risks

Strategic workforce planning Identification of high-level trends and developments that will affect the availability of the workforce required to deliver organisational outcomes, and actionable strategies to mitigate these risks.

Strategic workforce planning usually focuses on a three to five-year time horizon, with many organisations focusing on a four-year time horizon aligned to Portfolio Budget Statements.

Strategic workforce reporting Communication of the outcomes of workforce analysis to key stakeholders in a targeted way, to provide evidence to inform decision making towards mitigating workforce risks.

Trend analysis See ‘Forecasting’.

Workforce gap Where the workforce available differs from the workforce required.

Workforce metric A quantifiable measure of workforce activity or an aspect of its profile, and its possible implications for organisational performance.

Workforce risk Any workforce issue that could pose risk to delivery of business outcomes and outputs.

Workforce risks arise where is a misalignment between the organisation’s existing workforce and the workforce required to deliver its objectives.

Workforce trend The pattern established by comparing the measurements of a workforce metric over time.

1APS Strategic Workforce Analysis and Reporting Guide


Strategic workforce analysis and reporting explainedStrategic workforce analysis is how you examine and interpret workforce data, within the context of relevant internal and external environmental factors, to identify workforce risks. Ideally, this will have been undertaken as a key component of mature strategic workforce planning. However, not all organisations have progressed workforce planning and those who have may identify emerging issues or issues not previously identified.

Strategic workforce analysis also provides evidence to confirm or negate existing assumptions about the workforce that are used to inform or justify organisational decision making.

Strategic workforce reporting is how you communicate the outcomes of workforce analysis to key stakeholders in the organisation in a targeted way, to provide evidence that is meaningful to them and informs their decision making. It is reporting in a way that can be readily understood by key stakeholders who may not be familiar with the language commonly associated with workforce data. It is reporting with a purpose, and not reporting for the sake of reporting.

Effective, targeted strategic workforce reporting enables the appropriate workforce strategies to be implemented, or existing strategies to be adjusted (or ceased) to ensure the required workforce is achieved and sustained and workforce risks mitigated. Organisations with mature workforce planning in place will ideally implement and adjust strategies as part of that process.

For strategic workforce reporting to be effective, it must be based on the outcomes of effective workforce analysis. For strategic workforce analysis to be effective, it must be supported by reporting that effectively communicates the outcomes to stakeholders.

The basis for undertaking strategic workforce analysis and reportingAs an organisation’s workforce is one of its largest assets and investments, there is a business imperative to understand, manage and plan for it properly. Strategic workforce analysis and reporting provides information that builds understanding, and supports effective management and planning now and in the future. It also provides a means of measuring the extent to which workforce management and planning (and associated strategies and initiatives) are mitigating the risks to achieving the workforce required to deliver business outcomes.

By establishing a shared language that links workforce metrics to business outcomes, strategic workforce analysis and reporting also provides a platform for engaging more effectively with your Executive and working in partnership with business.

Undertaking effective strategic workforce analysis and reportingEffective strategic workforce analysis and reporting can be achieved by working in partnership with key business stakeholders, and the areas responsible for strategic financial and workforce planning (if these are separate functions). This ensures the information provided is relevant to the delivery of business outcomes and supports strategic financial and workforce planning. It includes agreement on



what metrics are measured, why they are measured, how they are measured, how often, by whom, and to what standard.

There are two key considerations when undertaking strategic workforce analysis and reporting:

identifying and understanding workforce risks to business delivery, and

managing these risks to mitigate potential impact.

Many organisations have unique workforce characteristics and requirements, varying levels of progression of strategic workforce analysis and reporting, and different approaches to strategic workforce planning. An organisation’s approach, therefore, needs to be tailored accordingly to meet the reality of its situation and maturity of its planning.

Identifying and understanding workforce risksA workforce risk is any workforce issue that could pose risk to delivery of business outcomes and outputs. They arise where is a misalignment between the organisation’s existing workforce and the workforce required to deliver its objectives.

Workforce risks can arise from issues such as critical skills shortages, an increasing number of staff exits, or significant workforce retirement intentions. However, such issues are only workforce risks in so far as they have a potential impact on the organisation’s business delivery.

A key consideration of strategic workforce analysis and reporting is identifying and understanding workforce risks. This involves a number of considerations, such as:

Monitoring workforce data that is relevant to business delivery,

Analysing workforce data to identify any workforce related issues that could pose risk to the delivery of business outcomes and outputs,

Consulting the business to assess potential impact of workforce issues on business delivery, and

Reporting to key business stakeholders on the workforce and any associated workforce risks, to inform organisational decision making towards mitigating these risks.

If your organisation has mature workforce planning in place, workforce risks should have been identified as part of that process, and strategic workforce analysis and reporting should complement these. However, ongoing strategic workforce analysis will enable you to identify emerging issues as well as issues not previously identified.

Monitoring workforce data that is relevant to business delivery

Regular and consistent monitoring of relevant workforce data enables you to identify emerging workforce issues. If these are assessed to be workforce risks, proactive mitigation can be initiated before the full potential impact of the risks are realised. It also enables you to assess the impact of strategies implemented through workforce management and planning.

Regular and consistent monitoring also aids the understanding of the current workforce for managers and planners. It provides a firmer basis for workforce planning discussions, to better understand the current demand and supply dynamics impacting the future workforce, and the drivers that may be causing workforce gaps.



Diagram 1 below highlights some examples of the data sources you might consider utilising to obtain workforce data.

Diagram 1. Examples of workforce data sources

A reliable HRMIS is the ideal source of workforce data. However, if your organisation’s HRMIS has limited functionality, you may need to use alternative sources while considering how (and if) to address these issues.

The sources highlighted above provide a broad range of data and you will need to consult your key business stakeholders to determine what is useful and relevant for your organisation.

Business stakeholders will also have an intuitive sense of the potential workforce issues and risks based on their experience, and these can be tested with the evidence produced through the regular monitoring of workforce data.

Benchmarking can also assist with testing assumptions. For example, increasing the representation of women in the workforce has been a key concern for the ICT industry. Therefore, an organisation with a lower proportion of women than men might consider this a workforce risk. However, industry benchmarking may reveal it to be higher than the industry average and investing in strategies to increase the representation of women may not be effective or possible.

Workforce metrics

In business, a metric is used to gauge some quantifiable component of an organisation’s performance, such as return on investment, or revenue.


Human Resource Management Information System (HRMIS)Performance Management SystemFinancial systemAPSEDii Time keeping/Flex sheet /Attendance systems

IT Systems

Exit SurveyNew Starter SurveyStaff Pulse SurveysEmployee Census

Surveys

Strategic Workforce PlansEnvironmental Scans of the labour marketCorporate Plans (Strategic Plans and Business Plans)

Documents


In strategic workforce analysis and reporting, a metric is used to gauge some quantifiable measure of workforce activity or an aspect of its profile, and the possible implications for organisational performance.

To be effective, metrics should be meaningful, measurable, and relevant. They should be agreed to and consistently used across the organisation. When determining which workforce metrics to measure, you might consider the following points:

Purpose – Determine, in consultation with your key business stakeholders, what you want to know about the workforce, and which metrics will be most useful in providing this knowledge. For example, you might measure tenure by examining the level of corporate knowledge.

Audience – Identify the key stakeholders who will use the data to inform their decision making, what information they have requested, what they believe their workforce issues are, and which workforce metrics are most influential to their decision making.

Data source – Determine whether there is an existing data source for each of the selected metrics, or whether new data will need to be captured in the first instance.

Data integrity1 – Ascertain the strengths and weaknesses in the data. These will determine what metrics you are able to measure confidently, and to what extent you can draw valid conclusions from them. It will also assist in identifying steps to improve the quality of the data.2

Definitions –Workforce metrics can be defined and calculated in various ways. Therefore, it is useful to gain agreement from your key business stakeholders (in keeping with APS reporting requirements) with a view to maintaining them consistently over time. This ensures a common understanding, and allows comparative analysis to be undertaken, which in turn assists with trend analysis and forecasting. It also ensures that workforce issues are genuine and not due to discrepancies in the data.

Example

Full-time equivalent (FTE) data can be misunderstood due to variations in the way it is defined and calculated3. From the perspective of Total FTE4 or Average Staffing Level (ASL)5, it will not include staff on leave without pay, and is effectively a measure of workforce affordability. If based on data in the Human Resource Management Information System (HRMIS), it may include staff on leave without pay, and is effectively a measure of workforce cost and/or maximum potential workforce capacity.

Workforce metrics can be grouped into common themes. Some examples of workforce metrics commonly monitored by organisations are provided in Table 1 below. Organisations might consider starting with a few basic metrics, and expanding and refining these over time.

Table 1. Examples of commonly monitored workforce metrics1 When assessing the quality of the data, the ABS Data Quality Framework may be a useful resource, it can be found at the following link: http://www.nss.gov.au/dataquality/resources.jsp.2 Adapted from the definition in a Guide to People Metrics 2010, The State of the Services Authority, 3 Treasury Place, Melbourne.3 Refer to Appendix A for a definition of FTE (Full time equivalent) as referred to throughout this document.4 Refer to Appendix A for a definition of Total FTE as referred to throughout this document.5 Refer to Appendix A for a definition of Average Staffing Level (ASL) as referred to throughout this document.



Workforce metrics commonly measured and monitored over time (by workforce theme)

Workforce availability

Workforce profile Workforce mobility Workforce capability

Workforce intentions and satisfaction

Full-time equivalent (FTE)

Location Recruitment Performance management

Employee engagement

Headcount (HC) Occupational grouping / Job family

Secondments Education and development

Intentions

Employment type (ongoing, non-ongoing, contract)

Classification level Transfers Qualifications

Employment status (full-time, part-time)

Age Resignations Skills and capabilities

Absence (planned, unplanned)

Gender Retirements Learning and development

Diversity Redundancies Tenure

Tenure

Some workforce metrics can be an indicator for more than one workforce theme. For example, tenure can indicate the level of workforce mobility and can also be indicative of workforce capability in terms of corporate knowledge and experience. While you will generally select metrics with a particular purpose in mind, it is worth considering the alternative uses with a view to expanding and developing your analysis and reporting over time. Some metrics can be combined to enable a greater granularity of analysis. For example, resignations by age provide a more detailed profile and greater level of meaning in relation to who is leaving the organisation, than resignations alone.

Lead and lag indicators

Workforce metrics are sometimes referred to as lead or lag indicators. Lead indicators inform future activities while lag indicators provide information about the past. The results of a recruitment intentions survey would be lead indicators because they can be used to inform future recruitment activity or forecast workforce growth. The absence rate for the past quarter would be considered a lag indicator because it is based on past absences.

Lag indicators are useful in establishing trends (comparison with previous lag indicators), to assist with forecasting the future state of the workforce if no action is taken. They can also be useful in understanding seasonal fluctuations and peak periods of business activity, and the ongoing impact of particular events or strategies and initiatives. They can also assist with establishing targets, such as attendance and unscheduled absence targets. For lag indicators, it is important to identify if there are any anticipated future impacts that may limit the effectiveness of a lag indicator as a predictor of the future, such as a slowing economy in relation to staff exit rates, for example. For lead or lag indicators, it is important to clarify the time point they were captured.



While it is worth considering the time horizon informed by workforce metrics, it does not determine their value as strategic measures. Workforce metrics are of strategic value if they support delivery of the strategic goals and objectives of the organisation.

Forecasting (Trend Analysis)

Trend analysis is the process of estimating what the workforce will look like at future time points within your planning horizon. It takes into consideration past trends and ratios for metrics such as staff exits, age and absence, etc. Trends are ideally based on three years of historical data, calculated on a monthly basis to flatten out any unusual highs and lows and seasonal fluctuations. These highs and lows, and the reason for them, need to be considered when determining an agreed and realistic rate.

Taking a simplistic approach to trend analysis, you can then use this rate to estimate the effect on the workforce into the future if you take no action today. This is based on an assumption that all else will remain the same and patterns will remain stable. A more complex approach considers the impact on the workforce of external factors, such as labour market forces (unemployment rate, skills shortages and budget forecasts, etc.).

Analysing workforce data to identify any workforce issues that could pose risk to the delivery of business outcomes and outputs

Strategic workforce analysis involves examining your workforce data in depth, to achieve a more sophisticated level of understanding and identify potential workforce risks. It examines what is happening (within the context of the broader internal and external environment), where, how and why it is happening and, importantly, what it might look like in the future if left unattended.

Example

Measuring the organisation’s staff exits indicates the rate at which employees are leaving the organisation. However, to understand the nature (or root cause) of staff exits, a more detailed and broader level of analysis is required.

Examining the exit rate at a more granular level, such as occupational groupings, may reveal that staff exits are particularly high in certain groups. If low rates elsewhere offset the higher rates, the organisation’s rate will mask these potential workforce risks.

Examining exit rates over time may indicate a recent spike, a steady increase over time, or a systemic high level. The timing may coincide with an organisational change program or some other significant event. Extrapolating a trend into the future will provide a forecast of staff exits if no further action is taken.

Examining the destination of exiting staff may reveal that some areas of the organisation are supply sources for others. Combining staff exit data with performance data may reveal whether high performers are exiting at a higher rate, while consulting staff exit survey results is also likely to provide additional strength to your analysis.

The more granular the level of detail, the greater the number of relevant metrics you combine into your analysis, and the greater the number of additional sources you consult, the stronger the analysis and level of understanding achieved.

Consulting the business to assess potential impact of workforce issues on business delivery



Once you have a thorough understanding of any workforce issues, you can assess the potential implications for delivery of business outcomes and outputs. Herein lies the real value of strategic workforce analysis and reporting as it provides the basis for taking action.

In order to translate workforce data into information that is useful to the business, it is recommended you consult your key business stakeholders, who are effectively your subject matter experts. They have an intimate knowledge of the business and business demand, and can therefore make linkages between the state of the workforce and how this translates into associated risks to business.

To better understand workforce risk, it may be useful to consider the workforce in terms of occupational groupings (job families) and/or critical job roles, if this approach to workforce segmentation has been progressed within your organisation. For example, high-level staff intentions to exit within roles that have long lead times for developing new staff pose greater risk to business than roles that are more easily and readily filled.

Establishing a working group may be useful to engage with your key business stakeholders, and also provides a good foundation for the ongoing management of any change process required to mitigate workforce risks. A working group to progress workforce planning may already exist, and could be utilised for this purpose in order to strengthen the link between workforce analysis and reporting, and workforce planning.

Consulting key business stakeholders also assists to engage them in the process and broaden their perspective. It positions them to better understand their workforce requirements and influence the state of the workforce to manage potential workforce risks. It also helps to ensure the organisation is focusing on what is most important to the delivery of business, and that it is implementing responsive and targeted workforce strategies and initiatives.

Example

A high staff exit rate is generally considered a workforce risk due to loss of experience, skills and capabilities, and corporate knowledge. It can also indicate increasing cost in terms of recruitment and the time to fill a higher number of vacancies and develop a larger number of new employees.

A high exit rate for a particular sector of the workforce could be of significant risk if it is critical to the delivery of business outcomes and outputs. If a high proportion of exiting staff have a long tenure with the organisation, the risk may be higher due to the associated loss of corporate knowledge.

In some workforce sectors, high exit rates may be appropriate given the demanding nature of the work. It might also indicate where ‘burn out’ is occurring, thereby enabling the organisation to reorganise work or create career paths that limit the loss of corporate knowledge.

There are other sectors where it might also be expected, and therefore not necessarily considered a risk, such as the age group approaching retirement, or for non-ongoing employees or employees on long term leave who resign after utilising all of their leave entitlements.

It is through consultation with key business stakeholders that you will be able to draw such conclusions.

It is also important to understand the point at which the organisation realises a return on its investment in the recruitment of a new employee.



Reporting to key business stakeholders on the workforce and any associated workforce risks, to inform organisational decision making towards mitigating these risks

Any workforce issues or risks need to be communicated to the relevant key business stakeholders, to inform them in their business planning and decision making.

A commonly cited barrier to progressing strategic workforce planning is a lack of executive buy-in. Transitioning from traditional transactional-style HR reporting to strategic workforce reporting (with direct linkages to the business), can provide business managers with evidence based information and analysis that they can easily understand and absorb. Strategic workforce reporting is one method by which HR can gain credibility and influence in organisational decision making.

Reporting format and frequency will vary depending on the purpose, the needs and circumstances of your organisation, and the needs and preferences of your key business stakeholders. However, it can be useful to establish a regular reporting schedule (such as monthly and/or quarterly) as agreed with your key business stakeholders. The data you report on will also vary and again, it is useful to consult your key business stakeholders.

Effective workforce reporting utilises techniques to most effectively present information, in order to solicit inquiry and discussion from the targeted audience.

When considering how to approach workforce reporting, you might consider the following points:

Data integrity – Note any strengths and weaknesses in the data so that your key business stakeholders are aware of any limitations, as they will be using the data to inform their decision making. This will also help gain support for taking steps to improve the data.

Audience – Understand how your key business stakeholders like to receive information and what drives them; what their priorities, interests and background are. This will influence the focus of your reporting, as well as the format, style and language you adopt. Key business stakeholders will generally prefer reporting that utilises business language rather than HR language. Consider also what reports your audience already receives, and how strategic workforce reporting might fit in relation to these.

Purpose – Determine the key messages you want to communicate to your key business stakeholders, why you are presenting the report, what outcomes you are seeking, and what action might then be taken.

Format – Consider how to most effectively communicate your key messages, based on the nature of the data (and associated messages), the outcomes sought, and your audience’s needs and preferences. Consider the complexity of the data (and associated messages).

Frequency – Determine how frequently to report, based on the nature of the data (and associated messages), the outcomes sought and the audience’s needs and preferences. Determine how frequently other reports are provided, and how strategic workforce reporting might fit in relation to these.

Definitions – Obtain consensus and clarify the definition and method for calculating each workforce metric (e.g. in an appendix to your report). This will ensure transparency, prevent



misunderstanding and promote consistency. Appendix A provides a reference point for workforce metrics commonly monitored by organisations, including definitions and formulas for calculation.

Levels of strategic workforce reporting

There are generally three levels of strategic workforce reporting: monthly, quarterly and issue-specific (or deep dive) reports as required. There are general recommendations for each type, however it is important to consider the needs and circumstances of your organisation, and the needs and preferences of your key business stakeholders, so they can be adapted accordingly. While the three levels of reporting will differ, and aim to meet different business needs, ideally they should still support and complement each other.

Monthly reporting – The aim of monthly reporting is generally to provide an overview of the workforce, and how it has changed over the month compared to the previous month. It usually highlights any trends or other workforce risks that have emerged during the month, and commonly targets select stakeholders from key business areas.

Monthly reports can be effective in engaging your stakeholders, by stimulating their interest and providing regular exposure to workforce data. They enable potential risks to specific business areas to be monitored, and promote understanding of workforce risks and opportunities.

In general, it is recommended that monthly reports:

are succinct;

draw comparison with either the previous month or the same month in the previous financial year, and the financial year-to-date; and

utilise graphs, charts and tables.

Quarterly reporting - Quarterly reporting generally provides a more detailed level of analysis (within the context of strategic workforce considerations). It usually focuses on a broader range of workforce themes and is commonly targeted at a broader group of key business stakeholders from across the organisation.

Quarterly reporting provides an opportunity to raise issues that could pose risk to business delivery. It provides an opportunity to present a more strategic level of analysis, and make recommendations for action.

In general, it is recommended that quarterly reports:

are analytical, detailed and thorough;

provide an overview of the wide range of workforce themes;

highlight any prevailing workforce gaps and other workforce issues;

draw comparisons with either the previous quarter or the same quarter in the previous financial year, and the financial year-to-date;

indicate performance against workforce targets and relevant benchmarks;

utilise graphs, charts and tables along with supporting written analysis; and

include any recommendations for further action, where this is required.





Issue-specific reporting - Issue-specific reports are ‘deep dive’ reports that provide an opportunity to examine in depth a particular workforce gap, trend or other workforce issue (within the context of strategic workforce considerations). The issue generally poses significant risk to the delivery of business outcomes and outputs. Issue-specific reports are provided on an ‘as required’ basis, but generally no more than once or twice per year due to the level of analysis and preparation involved. They are commonly targeted at a specific audience, depending on the issue.

The following table provides tips for framing and planning strategic workforce reporting on a monthly, quarterly and issue-specific basis.

Table 2. Tips for framing and planning strategic workforce reporting

Tips for framing and planning strategic workforce reporting on a monthly, quarterly and issue-specific basis

Aspect of reporting Level of reporting

Monthly reporting Quarterly reporting Issue-specific reporting

Length 1-2 pages (A3 or A4) No more than 15 pages No more than 30 pages

Presentation Graphical summary Written report including graphs, charts and tables

Deep-dive report

Audience Select key business stakeholders

Key business stakeholders, more broadly

A specified audience for a particular purpose

Metrics High level workforce data of note that can change within the period of a month, as well as any workforce issues that require monitoring on an ongoing basis.

Quarterly data on workforce availability, profile, mobility and capability, as well as any strategic workforce considerations for the quarter.

Detailed reporting on a particular workforce trend or other workforce issue that requires deeper analysis.

Data comparison Data commonly compared to the previous month, the same month in the previous financial year, and the current financial year-to-date

Data commonly compared to the previous quarter, the same quarter in the previous financial year, and the current financial year-to-date

Data comparison points are drawn as relevant to the issue

Reporting period The previous month. The previous financial year quarter:

Q1: July – September

Q2: October – December

Q3: January – March

Q4: April – June.

Time period relevant to the issue

Circulation Within the first week of the following month.

Within the first two weeks of the following quarter.

Once a year.



While it might generally be appropriate to circulate monthly reports directly to the audience, it may be useful to table quarterly and issue-specific reports for presentation and discussion at Executive meetings. This ensures visibility of the issues and promotes discussion at a strategic level.

Example

It might be appropriate to report on staff exits quarterly, however if an increasing trend begins to emerge in a particular business division, it may need to be included in monthly reporting to the relevant Executive. This would flag the trend as an issue possibly requiring further investigation in relation to impact on business.

If the trend continues, it may become the focus of an issue-specific report that analyses the issue further; to consider the implications for business delivery (for the division and the organisation), and consider possible strategy options.

For all levels of reporting:

consider using graphs, charts, symbols or pictures to visualise the data and draw attention to key messages

where possible, build a story showing how one workforce issue may lead to another which, in turn may lead to the emergence of a workforce risk;

consider using forecasts to analyse the extent to which workforce trends may become workforce issues or risks;

focus on facts;

ensure calculations are accurate;

keep it as succinct as possible, given the level of data complexity;

reference internal and external style guides;

reference relevant other documents and sources of information; and

prepare for presentations.

Managing workforce risksA further key consideration of strategic workforce analysis and reporting is managing identified workforce risks to delivery of business outcomes and outputs. This encompasses a number of considerations, such as:

Identifying strategy and initiative options to address workforce risks,

Setting aspirational targets,

Benchmarking, and

Measuring, evaluating and adjusting.

If your organisation has mature workforce planning in place, the strategy options for addressing workforce risks are likely to have been identified and implemented as part of that process. However, based on the ongoing identification of emerging workforce risks (through strategic workforce analysis and reporting), existing strategies may need to be adjusted (or ceased), and new ones implemented.



Identifying strategy and initiative options to address workforce risks

Regular monitoring of workforce data informs workforce plans, enabling them to be adjusted and reviewed on an ongoing basis. Strategy development and implementation will be most effective if you explore the success likelihood of all options, and the limitations and costs in relation to the expected benefit. This will enable you to better engage with, and gain support and commitment from the appropriate key business stakeholders. It is helpful to ensure that each strategy and initiative has associated targets aligned to them, so that you can report on their outcomes, and monitor and adjust as appropriate.

Example

If strategic workforce reporting indicates that staff exits are particularly high in an occupational grouping that is critical to business delivery, this enables strategies to be targeted appropriately at that occupational grouping. This ensures resources are invested where they are needed most, and will have the most impact.

By monitoring staff exits on a regular basis, you will be in a position to report on whether there has been a return on your investment of resources. That is, you will be able to provide evidence that indicates whether the strategies targeted at the occupational grouping are succeeding.

Setting aspirational targets

You might consider setting aspirational targets to indicate the desired state of the workforce that will enable the organisation to effectively deliver its business outcomes and outputs. These targets are ideally set within the context of the organisation, in isolation from other organisations. Consultation with, and endorsement from key business stakeholders will be invaluable in this process, given their intimate knowledge of the business and the workforce required.

Targets should be set so that they are SMART (specific, measurable, achievable, realistic, and time-bound)—see Appendix B for further explanation.

Example

An organisation may set its target for staff exits at a rate that it considers will ensure:

- sufficient retention of corporate knowledge,

- allow for a level renewal and refreshment of capability, and

- maintain costs associated with replacing staff at an acceptable and affordable level.

However, if staff exits are particularly high in a business division that is critical to business delivery, the critical target will not be the target rate for the organisation, but for the business division itself.

Benchmarking

You may also consider benchmarking against similar organisations, to gauge the organisation’s performance within a broader context. Comparison against similar organisations can be a means by which improvements in performance are sought, and best practice is ensured. Benchmarking can be undertaken internally (against other cross sections or divisions of the organisation) and externally (against other APS organisations6 or private sector companies). In either case, for effective

6 The Australian Public Service Employment Database Internet Interface (APSEDII) is a useful resource to assist with benchmarking against other APS organisations. The APSEDII provides querying capability on a database of staff employed within the APS under the authority of the Public Service Act 1999 and can be accessed through the APSC website at:



comparison to be drawn, you must ensure that the definitions and calculations associated with your organisation’s metrics are the same as those used by the organisation you are benchmarking against.

Benchmarking will be most effective if you identify those organisations that produce similar outputs, have similar constraints, and similar workforce requirements. For example, it may not be realistic for a call centre function to benchmark itself against APS-wide metrics, however benchmarking against similar occupations will be more relevant. Even for similar occupations, the context may be quite different. For example, call centres in a public service context might be quite different to call centres in a private sector context. While benchmarking can be useful, it will very rarely if ever provide direct comparison between identical metrics in identical contexts.

Benchmarking workforce metrics may assist you to communicate your key messages more effectively, by drawing attention to similar organisations and highlighting strengths that provide opportunities for development within your own organisation. It also provides an opportunity to draw from the experiences of, and lessons learned by other organisations you identify as benchmark exemplars.

Measuring, evaluating and adjusting

For workforce reporting to be valuable and credible, it needs to tell your key business stakeholders how the organisation’s workforce is performing in line with expected outcomes and aspirational targets. Workforce data supports this evaluation process as it can be used to measure the effectiveness of strategies, and determine whether there are any adjustments required.

Performance against targets should be monitored regularly to ensure that strategies and initiatives are succeeding. It is a good idea to provide ongoing progress reports to your key business stakeholders to ensure there are no surprises, and adjustments can be made as required.

https://www.apsedii.gov.au/APSEDIIFirstPage_index.htm.



Appendix A: Common workforce metrics

Workforce theme: Workforce availabilityCategory Metric Sources

referenced*Definition Formula Purpose

Employment type (Category)

Employment type profile

-SOSR.-Statistical Bulletin.

The breakdown of the organisation’s total workforce by employment types within the workforce.

Employment types include: Ongoing—Permanent employees.Non-ongoing—Non-ongoing employees engaged for a specified term or task.Casual—Non-ongoing staff engaged for duties that are irregular or intermittent.Contractor—Workers paid through a third party.

Can also be presented as the percentage of the total workforce by employment type.

Note: The total workforce includes employment types not included in total headcount.

For each employment type:Headcount (Employment type)

Percentage breakdownFor each employment type:Headcount (Employment type) / Headcount (Total workforce)*100

Useful for understanding the mix of your workforce in relation to types of employment arrangements.

Useful for organisations that frequently utilise or have large proportions of non-ongoing employees (or contractors or casuals).

Can be useful for examining seasonal or cyclical workload and ability to respond to surges in workforce demand.

Headcount Total headcount

Developed in consultation with APS agencies.

The number of employees directly employed by the organisation at a point in time.

Includes: - All full-time and part-time, ongoing and non-ongoing employees engaged for a specified term or task, including those on leave, such as maternity leave, long service leave, etc.Excludes:-*Non-ongoing staff engaged for duties that are irregular or intermittent (casuals).-*Workers paid through a third party (contractors).

*If you opt to include casuals and contractors in your total headcount, this should be specified clearly.

Number of ongoing employees + Number of non-ongoing employees (specified term/task)

Indicates the number of employees working for the organisation, regardless of hours worked, other working arrangements or leave.

Useful for workforce profiling as other workforce metrics are also provided in terms of headcount (recruitment and exit rates, for example).

Headcount is useful when measuring data that relates to individuals (such as age, gender, diversity, etc.).



Category Metric Sources referenced*

Definition Formula Purpose

Headcount

(Continued)

Total headcount (Ongoing)

Adapted from ‘Total headcount’.

The number of ongoing employees directly employed by the organisation at a point in time.

Number of ongoing employees Indicates the size of the core workforce for the organisation, regardless of hours worked and other working arrangements or leave.

Average headcount

Adapted from ‘Total headcount’.

The average number of employees directly employed by the organisation over a specified period.

Average headcount is the average of total headcount at the end of the period and total headcount at the beginning of the period.

Total headcount (end of period) + Total headcount (beginning of period) / 2

Removes unusual variances that can be associated with data at a point in time, and therefore gives a more accurate reflection of the level of staffing over the period.

Average headcount (Ongoing)

Adapted from ‘Total headcount (Ongoing)’ and ‘Average headcount’.

The average number of ongoing employees directly employed by the organisation over a specified period.

Average headcount (ongoing) is the average of total headcount (ongoing) at the end of the period and total headcount (ongoing) at the beginning of the period.

Total headcount (Ongoing)(end of period) + Total headcount (Ongoing)(beginning of period) / 2

Removes unusual variances that can be associated with data at a point in time, and therefore gives a more accurate reflection of the level of ongoing staffing over the period.





Full time equivalent(FTE)

Total FTE -Agency Survey.

The number of full-time equivalent employees directly employed by the organisation at a point in time.

Part-time employees are converted to full-time equivalent.

Includes:-all active full-time and part-time, ongoing and non-ongoing employees engaged for a specified term or task paid through payroll (part-time employees are converted to full-time equivalent based on the hours they work).Excludes:-Overtime.-*Non-ongoing staff engaged for duties that are irregular or intermittent (casuals).-*Workers paid through a third party (contractors).-Employees on unpaid leave—see ‘Note’ below.

*If you opt to include casuals and contractors in your total FTE, this should be specified clearly.

Note: There may be variations in the way systems calculate full-time equivalent. For example, Human Resources systems will generally include employees on leave without pay, whereas Financial systems won’t generally include employees on leave without pay.

Number of full-time equivalent employees + Total part-time hours / Standard full-time hours

Example:If standard (full-time) hours per fortnight = 75 and there are 200 employees, including 20 part-time employees:

180 are full-time-10 work 40 hrs/fortnight[= 10*(40 / 75) = 5.33 FTE]-6 work 30 hrs/fortnight[= 6*(30 / 75) = 2.40 FTE)-4 work 25 hrs/fortnight[= 4*(25 / 75) = 1.33 FTE)

Therefore, Total FTE = 180(full-time employees) + [5.33+2.40+1.33] = 189.06

Indicates the number of active full-time equivalent employees (based on aggregated hours worked by all full-time and part-time employees) at a point in time, and is generally used to manage employee budget allocation and ensure adequate staffing.

Full-time equivalent (versus headcount) is useful when measuring workforce capacity and workforce cost.





Full-time equivalent (FTE) (Continued)

Paid FTE Adapted from ‘Total FTE’.

The number of full-time equivalent employees receiving salary or wages by the organisation at the end of a pay period.

Part-time employees are converted to full-time equivalent.

Includes:-all active full-time and part-time, ongoing and non-ongoing employees engaged for a specified term or task paid through payroll (part-time employees are converted to full-time equivalent based on the hours they work).Excludes:-Overtime.-*Non-ongoing staff engaged for duties that are irregular or intermittent (casuals).-*Workers paid through a third party (contractors).-Employees on unpaid leave.

Number of paid full-time equivalent employees + Total part-time hours / Standard full-time hours.

Example:If standard (full-time) hours per fortnight = 75 and there are 200 employees, including 20 part-time employees:

180 are full-time-10 work 40 hrs/fortnight[= 10*(40 / 75) = 5.33 FTE]-6 work 30 hrs/fortnight[= 6*(30 / 75) = 2.40 FTE)-4 work 25 hrs/fortnight[= 4*(25 / 75) = 1.33 FTE)

Therefore, Total FTE = 180(full-time employees) + [5.33+2.40+1.33] = 189.06

This metric is used as the basis to calculate the Average Staffing Level for the financial year.

Total FTE (Ongoing)

Adapted from ‘Total FTE’.

The number of full-time equivalent ongoing employees directly employed by the organisation at a point in time.

Number of full-time equivalent employees (Ongoing) + Total part-time hours (Ongoing) / Standard full-time hours

Indicates the size of the core workforce for the organisation at a point in time, in terms of full-time equivalent employees, regardless of hours worked and other working arrangements.

Average FTE Adapted from ‘Total FTE’.

The average number of full-time equivalent employees employed by the organisation over a specified period.

Average FTE is the average of total FTE at the end of the period and total FTE at the beginning of the period.

Total FTE (end of period) + Total FTE (beginning of period) / 2

Useful for monitoring average workforce capacity and average workforce cost (salary).





Full-time equivalent (FTE) (Continued)

Average FTE (Ongoing)

Adapted from ‘Total FTE (Ongoing)’ and ‘Average FTE’.

The average number of full-time equivalent ongoing employees employed by the organisation over a specified period.

Average FTE (Ongoing) is the average of total FTE (Ongoing) at the end of the period and total FTE (Ongoing) at the beginning of the period.

Total FTE (Ongoing)(end of specified period) + Total FTE (Ongoing)(beginning of specified period) / 2

Useful for monitoring average workforce capacity and average workforce cost (salary) associated with the ongoing workforce.

Average staffing level (ASL)

- Federal Budget website.

The number of full-time equivalent employees receiving salary or wages (Paid FTE) by the organisation averaged over the financial year.

ASL can be measured at various time points over a financial year to enable tracking against the estimated ASL prescribed in the Portfolio Budget Statement for the organisation for that financial year.

Sum of Paid FTE (for each pay period from the beginning of the financial year up to and including the current pay period) / Number of pay periods (from the beginning of the financial year up to and including the current pay period)

Measures workforce expenditure against the estimated ASL prescribed in the Portfolio Budget Statement for the organisation for that financial year.

The organisation’s estimated ASL is usually allocated across individual business units by the organisation’s finance area to enable business units to manage their individual allocations.

Employment status

Employment status profile


The breakdown of total headcount by number of full-time employees and part-time employees.

Can also be presented as the percentage of total headcount by employment status.

Note:Casuals and contractors should be recorded separately to other full-time and part-time employees as they reflect a contractual situation as opposed to workplace flexibility.

For each employment status:Headcount (Employment status category)Percentage breakdown:For each employment status:Headcount (Employment status category) / Total headcount*100

Useful for better understanding the organisation’s workforce profile and workforce availability, and for monitoring and measuring access to and utilisation of flexible working arrangements.





Absence Unscheduled absence rate

-CLC Metrics (‘Unscheduled absence rate’, pp. 314 – 315).-SOSR.

The full-time equivalent number of unscheduled leave days as a percentage of the total full-time equivalent working days during the reporting period.

Unscheduled leave is defined as leave taken in recognition of circumstances that can generally arise irregularly or unexpectedly, making it difficult to plan, approve or budget for in advance, and which is inclusive of planned medical procedures.

Note: Total unscheduled leave days excludes leave taken by non-ongoing staff engaged for duties that are irregular or intermittent (casuals) or workers paid through a third party (contractors).

Note: By default, all other metrics based on total unscheduled leave days also exclude casuals and contractors.

Total FTE unscheduled leave days/Total FTE working days*100

Provides an indication of the prevalence of unscheduled leave in an organisation, and may be particularly useful for organisations that are significantly impacted by employee absences.

Can be useful for understanding the timing of absences and anticipate staffing needs, and can be indicative of costs and productivity losses.

Can also be indicative of workforce morale, or potential impact on workforce morale.

Unscheduled absence rate per employee

-CLC Metrics (‘Unscheduled absence days per employee’, pp. 312 – 313). -SOSR.

The average number of full-time equivalent unscheduled leave days per full-time equivalent employee.

Total FTE unscheduled leave days / Total FTE*100





Absence(Continued)

Unscheduled absence type profile

-Agency Survey.

The breakdown of total full-time equivalent unscheduled leave days by leave type (leave types outlined below).

Can also be presented as the percentage of total full-time equivalent unscheduled leave days by leave type.

Unscheduled leave types include:Sick—A workplace absence, regardless of duration, whether paid or unpaid, due to personal illness or injury or to undergo a planned medical procedure.Carer’s—A workplace absence, regardless of duration, whether paid or unpaid, to provide care or support for a member of the employee’s immediate family or household who requires care or support.Compensation—A workplace absence resulting from personal injury or disease sustained out of, or in the course of, employment (i.e. work related) and accepted by Comcare. Specific types of miscellaneous/other—A workplace absence, regardless of duration, whether paid or unpaid, that is taken upon the death of a member of the employee’s immediate family or household (bereavement), or to spend time with a seriously ill, injured or dying person who is a member of the employee’s immediate family or household (compassionate), or in the event of an unexpected emergency.Unauthorised—A workplace absence, regardless of duration, whether paid or unpaid, that given the circumstances is not supported or approved by management. For example an absence due to participation in workplace disputes.

For each unscheduled absence type:Total FTE leave days (Unscheduled absence type)

Percentage breakdown:For each unscheduled absence type:Total FTE leave days (Unscheduled absence type) / Total FTE unscheduled leave days*100

Particularly useful for organisations that have identified an issue with unscheduled leave and wish to understand it further so they can implement targeted strategies or initiatives to address it.



Workforce theme: Workforce profileCategory Metric Sources


Location Location profile

-SOSR. -Statistical Bulletin.

The breakdown of total headcount by geographic location.

Can also be presented as the percentage of total headcount by location.

For each location:Headcount (Location)

Percentage breakdown:For each location:Headcount (Location) / Total headcount*100

Particularly useful for organisations with a widespread workforce.

Also useful in linking to the external labour market (particularly regional and local labour markets).

Useful to understand the trends presenting within the data for different locations, across various workforce themes.

Occupational grouping/Job family

Occupational group/Job family profile

-WFP Guide.-Job Family Model.-SOSR.

The breakdown of total full-time equivalent employees by occupational group (or job family).

Can also be presented as the percentage of total full-time equivalent employees by occupational group (or job family).

For each occupational group:FTE (Occupational group)

Percentage breakdown:For each occupational group:FTE (Occupational group) / Total FTE*100

Useful for better understanding the composition of the organisation’s workforce, to monitor occupational groupings or job families that are critical to business delivery, or of particular risk due to labour market shortages.

Also useful for monitoring over- or under-resourcing and workforce allocations, etc.

Useful to understand the trends presenting within the data for different occupational groupings or job families, across various workforce themes.





Work function Work function profile

-Internal (APSC) input.

The breakdown of total full-time equivalent employees by work function (ongoing functions versus temporary projects).

Can also be presented as the percentage of total full-time equivalent employees by work function.

Note: Consideration might also be given to reporting on the number/percentage of total full-time equivalent employees on long term temporary transfer (e.g. greater than 90 days) to projects (temporary work functions)—by project—and the number/percentage of temporary vacancies (resulting from the temporary transfers) that are being back-filled.

For each work function type:FTE (work function type)

Percentage breakdown:For each work function type:FTE (work function type) / Total FTE*100

Useful for considering the impact on the workforce of temporary projects and analysing real staffing levels over time.

Classification level

Classification profile


The breakdown of total headcount by classification level.

Can also be presented as the percentage of total headcount by classification level.

Note: Consideration needs to be given to whether this metric is measured on the basis of substantive classification (which excludes temporary assignment at another classification level) or actual classification (which includes temporary assignment at another classification level), or both.

While substantive classification reflects the underlying composition of the workforce itself, it does not accurately reflect the workforce currently required.

Reporting on both substantive and actual classification provides a clearer picture in relation to workforce supply, workforce demand, and workforce cost. It also provides information about the development opportunities available to staff.

For each classification level:Headcount (Classification level)

Percentage breakdown:For each classification level:Headcount (Classification level) / Total headcount*100

Useful for monitoring the composition of the workforce.

May also be indicative of changing levels of work complexity, workforce cost, labour market shortages, and attraction issues, etc.

Useful to understand the trends presenting within the data for different classification levels, across various workforce themes.





Classification level(Continued)

EL to APS Classification Ratio

-APS agency input.-CLC Metrics (‘Staffing rate—managerial’, pp. 458 – 459).-SOSR.

The number of EL employees for every APS employee.

Note: You may also consider reporting on:

-number of SES employees for every APS/EL employee. -or number of EL 2 employees to employees at lower classifications.

Total headcount (APS classification levels) / Total headcount (EL classification levels)

Useful in understanding the proportion of managers to line staff, and for monitoring changing leadership patterns over time.

Age Age profile -SOSR.-Statistical Bulletin.-CLC Metrics (‘Age staffing breakdown’, pp. 422 – 423).

The breakdown of total headcount (ongoing) by age group.

Age groups include:Under 20 years20-24 years25-29 years30-34 years35-39 years40-44 years45-49 years50-54 years55-59 years60 years and over

Can also be presented as the percentage of total headcount (ongoing) by age group.

For each age group:Headcount (Ongoing)(Age group)

Percentage breakdown:For each age group:Headcount (Ongoing)(Age group) / Total headcount (Ongoing)*100

Useful for assessing the potential risk posed by likely age retirements and associated loss of corporate knowledge, skills and experience.

Also useful in understanding employee preferences and behaviours, to inform employment value propositions, for example.

Approaching retirement age rate (50+)

-CLC Metrics (‘Staffing rate—50+ years old’, pp. 430 – 431).

The number of ongoing employees in the age range considered to be approaching retirement (50 years or older) as a percentage of total headcount (ongoing).

Headcount (Ongoing)(50 years or older) / Total headcount(Ongoing)*100






Age(Continued)

Average workforce age

-CLC Metrics (‘Average workforce age’, pp. 424 – 425).

The average age of total headcount (ongoing). Sum of all ongoing employees’ ages / Total headcount (Ongoing)


Also useful in understanding employee preferences and behaviours, to inform employment value propositions, for example.

As a single metric, provides a quick and simple indication of workforce age, but does not provide any indication of the dispersion of ages around the average.

Gender Gender profile -SOSR.-Statistical Bulletin.

The breakdown of total headcount by number of men and number of women employees.

Can also be presented as the percentage of total headcount by gender.

For each gender:Headcount (Gender)

Percentage breakdown:For each gender:Headcount (Gender) / Total headcount*100

Useful for monitoring the composition of the organisation’s workforce, and to assist with promotion of workforce diversity.





Diversity Workforce diversity profile

-SOSR.- Statistical Bulletin.

The breakdown of total headcount (ongoing) by diversity group.

Diversity groups include:Aboriginal and Torres Strait Islander

Non-English Speaking Background (NESB) 1—People born overseas who arrived in Australia after the age of five and whose first language was not English.

Non-English Speaking Background (NESB) 2—Children of migrants including: those who were born overseas and arrived in Australia when they were aged five or younger but did not speak English as a first language; those who were Australian born but did not speak English as a first language and had at least one NESB 1 parent; and those people who were Australian born and had neither parent speaking English as a first language.

Disability

Can also be presented as the percentage of total headcount (ongoing) by diversity group.

For each diversity group:Headcount (Ongoing) (Diversity group)

Percentage breakdown:For each diversity group:Headcount (Ongoing) (Diversity group) / Total headcount(Ongoing)*100

Useful for monitoring the composition of the organisation’s workforce, and to assist with promotion of workforce diversity.



Workforce theme: Workforce mobilityCategory Metric Sources


Recruitment Recruitment rate

-CLC Metrics (‘External hire rate’, pp. 34 – 35).

The number of ongoing employees recruited during the period as a percentage of average headcount (ongoing) for the period.

Recruitment headcount (Ongoing) / Average headcount (Ongoing)*100

Useful for monitoring the volume of recruitment activity, and the rate at which new employees are entering the organisation.

Provides an indication of the relative ‘newness’ of the workforce, and can also be indicative of the rate of turnover.

Internal and External recruitment rate

-SOSR. The percentage of competitive selection exercises (for ongoing positions) filled by internal applicants, and the percentage filled by external applicants.

Number of competitive selection exercises (Ongoing positions) filled by internal/external applicants / Total competitive selection exercises (Ongoing positions) filled*100

Provides an indication of the extent to which the organisation’s employees are capable of taking up new positions in the organisation.

Is indicative of how appropriately employees have been developed and the availability of a broad internal succession pool.

Can also be indicative of the level of insularity of the organisation, and its capacity to compete effectively as a preferred employer.

Net recruitment rate

-CLC Metrics (‘Net hire ratio’, pp. 36 – 37).

The number of ongoing employees recruited during the period for every ongoing employee terminated during the period.

Recruitment headcount (Ongoing) / Termination headcount (Ongoing)*100

Indicates whether the organisation’s workforce is growing (net recruitment rate greater than 1) or contracting (net recruitment rate less than 1).

Promotion rate

-CLC Metrics (‘Promotion rate’, pp. 60 – 61).-SOSR.-Statistical Bulletin.

The number of ongoing employees promoted during the period as a percentage of average headcount (ongoing) for the period.

Internal promotions (Ongoing) / Average headcount (Ongoing)*100

May be indicative of the level of employee performance and management and leadership skills and capabilities, or issues associated with the organisation’s performance management process, or its capacity to compete effectively as a preferred employer.





Recruitment(Continued)

Average time to finalise selection exercises

-SOSR. The average number of working days to finalise competitive selection exercises (for ongoing positions), from the date of advertising to when an offer of employment is made.

Note: A selection exercises does not necessarily equate to one position. For example, a bulk selection round is counted as one selection exercise, even if more than position is filled through this process.

Sum of total working days to finalise all competitive selection exercises (Ongoing positions) / Offers accepted(Ongoing positions)

Useful for measuring the efficiency of selection processes, however does not account for the delay factor between an offer being made and the successful candidate commencing in the position.

Average time to fill selection exercises

-SOSR. The average number of working days to fill competitive selection exercises (for ongoing positions), from the date of advertising to the date the successful candidate commences in the position.

Sum of total working days to fill all competitive selection exercises (Ongoing positions) / Offers accepted(Ongoing positions)

Useful for measuring the time it takes to have new employees on board for positions that are vacant, and accounts for the delay factor between an offer being accepted and the successful candidate commencing in the position.

Applicant rate (internal and external recruitment processes)

-CLC Metrics (‘Applicant ratio’, pp. 72 – 73).

The average number of applicants for internal and external recruitment processes.

Total applicants (Internal/external recruitment process) / Total offers accepted

Useful for gauging the resource requirement for conducting recruitment processes, and can also be indicative of the level of demand for various positions and the organisation’s capacity to compete effectively as a preferred employer.

Secondments Secondment rate (in to and out of the organisation)

Developed in consultation with APS agencies.

The number of secondments of ongoing employees (in to/out of the organisation) as a percentage of total movements of ongoing employees..

Secondments (In/out) / Total movements*100

Useful for examining the availability of skills development opportunities for employees through secondments out of the organisation.

Also useful for measuring the level of secondments to the organisation, which provide an alternative source for filling temporary skills demands and a source of new ideas, creativity and innovation.





Transfers Internal transfer rate

-SOSR.-CLC Metrics (‘Lateral mobility’, pp. 58 – 59).

The number of permanent lateral movements of ongoing employees as a percentage of total movements of ongoing employees.

Lateral movements / Total movements*100

Useful for examining the availability of skills development opportunities for employees through lateral moves across the organisation.

External transfer rate (in to and out of the organisation)

-SOSR. The number of permanent external movements of ongoing employees (in to/out of the organisation) as a percentage of the total movements of ongoing employees.

External movements (In/out) / Total movements*100

Useful for tracking the level of mobility in to and out of the organisation.

Exits Agency exit rate

-SOSR.-Statistical Bulletin.-CLC Metrics (‘Termination rate’, pp. 120 – 121).

The number of ongoing employees who left the organisation during the period (voluntarily and non-voluntarily) as a percentage of the average headcount (ongoing) for the period.

Includes: -Age retirements (s.30 of the PS Act)-Retrenchments (s. 29(3)(a))-Invalidity retirements (s.29(3)(d))-Other terminations of employment (ss 29(3)(b),(c),(e),(f),(g) and (h))-Compulsory moves to a non-APS agency (s.72(1)(b))-Resignations, and -Deaths-Promotions and permanent transfers to other organisations

Exits (Ongoing) / Average headcount (Ongoing)*100

Useful for monitoring likely impact on departure, vacancy and replacement costs, including loss of corporate knowledge, skills and experience, and potential impact on workforce morale and workload.

Can also be indicative of organisational insularity, and ineffective performance management processes.





Exits(Continued)

APS Separation rate

-SOSR.- Statistical Bulletin.-CLC Metrics (‘Termination rate’, pp. 120 – 121).

The number of ongoing employees who left the APS during the period (voluntarily and non-voluntarily) as a percentage of the total average headcount (ongoing) for the period.

Includes: -Age retirements (s.30 of the PS Act)-Retrenchments (s. 29(3)(a))-Invalidity retirements (s.29(3)(d))-Other terminations of employment (ss 29(3)(b),(c),(e),(f),(g) and (h))-Compulsory moves to a non-APS agency (s.72(1)(b))-Resignations, and -Deaths

Excludes:-Promotions and permanent transfers to other organisations

Separations (Ongoing) / Average headcount (Ongoing)*100

Useful for monitoring likely impact on departure, vacancy and replacement costs, including loss of corporate knowledge, skills and experience, and potential impact on workforce morale and workload.

Can also be indicative of organisational insularity, and ineffective performance management processes.

Exit profile -SOSR.-Statistical Bulletin.

The breakdown of total exits of ongoing employees during the period by exit type.

Exit types include:ResignationsAge retirementsPromotions and permanent transfers (to other organisations)TerminationsRetrenchmentsInvalidity retirementsCompulsory moves to a non-APS agencyDeaths

Can also be presented as the percentage of total exits of ongoing employees by exit type.

For each exit type:Headcount (Ongoing)(Exit type)

Percentage breakdown:For each exit type:Headcount (Ongoing)(Exit type) / Total exits (Ongoing)*100

Useful for examining the reason why staff are exiting to ensure workforce strategies effectively target potential workforce risks.





Exits(Continued)

Voluntary exit rate

-CLC Metrics (‘Voluntary termination rate’, pp.124 – 125).

The number of ongoing employees who left the organisation voluntarily during the period as a percentage of the average headcount (ongoing) for the period.

Includes:-age retirements-resignations-promotions-ongoing transfers

Excludes:-voluntary and involuntary redundancies-invalidity retirements-terminations-Machinery of Government changes

Voluntary exits (Ongoing) / Average headcount (Ongoing)*100

Useful for monitoring employee-initiated exits, to help identify gaps in the organisation’s employment offer, or to identify emerging trends and issues that need to be addressed in particular business units or occupational groups or job families.

Voluntary exit profile

-CLC Metrics (’Termination reason breakdown’, pp. 122 – 123).-SOSR.

The breakdown of total voluntary exits of ongoing employees during the period by reason for exiting.

Can also be presented as the percentage of total voluntary exits of ongoing employees by exit type.

Reasons may include:-Desire to gain further experience-Lack of future career opportunities in current agency-Desire to try a different type of work/career change-Lack of recognition in current agency for doing a good job-Lack of opportunity to work on innovative projects in current job-Current remuneration package-Interests do not match responsibilities of current job-Senior leadership in current agency is of a poor quality-Promotions in current agency not based on fair and transparent recruitment processes-Desire to relocate

For each exit reason:Voluntary exits (Ongoing)(Exit reason)

Percentage breakdown:For each exit reason:Voluntary exits (Ongoing)(Exit reason) / Total voluntary exits (Ongoing)*100

Useful for examining voluntary exit drivers to ensure workforce strategies effectively target potential workforce risks.





Exits(Continued)

New starter exit rate

-APS agency input.

The number of exits of new ongoing employees with short tenure (<1 year) as a percentage of the total number of new ongoing employees with short tenure (>1 year).

Exits (Ongoing)(Tenure < 1 year) / Headcount (Ongoing)(Tenure < 1 year)*100

Useful in comparing the number of exits of new starters to the total number of new starters who could have possibly exited during the period.

Retention rate -CLC Metrics (‘Retention rate’, pp. 116 – 117). -Statistical Bulletin.

The percentage of all ongoing employees present at the beginning of the period still with the organisation at the end of the period.

Note:To obtain an accurate retention rate it is necessary to exclude employees who have both started and ceased during the period.

You may also consider reporting retention rates for high performers, high potential employees and employees in critical job roles, if these are identified by your organisation.

[Headcount (Ongoing)(Start of period) – Terminations (Ongoing)] / [Headcount (Ongoing)(Start of period) *100

Useful for monitoring the extent of departure, vacancy and replacement costs being incurred, and ensuring adequate resourcing, retention of corporate knowledge, and monitoring of existing retention strategies.

Can also be indicative of the organisation’s level of insularity, and ineffective performance management systems.

Retention rate is sometimes preferred by organisations as a more positive way of measuring turnover than the Separation rate.

Tenure Average workforce tenure

-CLC Metrics (‘Average workforce tenure’, pp. 470 – 471).

The average tenure for the total number of ongoing employees at the end of the period.

Sum of tenure [(Total headcount (Ongoing)](End of period) / Total headcount (Ongoing)(End of period)

Useful for monitoring loss or potential loss of experience and corporate knowledge.

Can also be indicative of organisational insularity and turnover, or organisational growth.

New starter tenure

-CLC Metrics (‘Staffing rate—< - year tenure’, pp. 474 – 475).

The number of ongoing employees who have been employed by the organisation for less than 1 year as a percentage of total headcount of ongoing employees.

Headcount (Ongoing)(Tenure <1 year) / Total headcount (Ongoing)*100

Useful for monitoring the percentage of the workforce with less than one year of tenure (and associated workforce challenges).



Workforce theme: Workforce capabilityCategory Metric Sources


Performance management

Performance appraisal participation rate

-CLC Metrics (‘Performance appraisal participation rate’, pp. 164 – 165).-SOSR.

The number of ongoing employees who received a performance rating during the period as a percentage of the number of ongoing employees eligible to receive a performance rating.

Number of performance ratings (Ongoing)(End of period) / Headcount (Ongoing)(Eligible for appraisal at end of period)*100

Provides an indication of the extent to which individual performance is being managed, to ensure it aligns with organisational expectations.

Can also be indicative of the effectiveness of the performance management process and the level of employee engagement.

Performance rating profile

-CLC Metrics (‘Performance rating distribution’, pp. 166 – 167).

The breakdown of total performance appraisal ratings for ongoing employees by rating category.

For each performance rating:Headcount (Ongoing)(Performance rating) / Total performance ratings (Ongoing)*100

Provides an indication of the extent to which individual performance aligns to organisational expectations.

Can be useful in identifying training and development needs and opportunities.

Can also be indicative of the effectiveness of the performance management process and the abilities of managers to deal with underperformance.

Performance rating improvement rate

-CLC Metrics (‘Employee upgrade rate’, pp.158 – 159).

The number of ongoing employees whose current performance rating is higher than the previous cycle, as a percentage of the total number of ongoing employees who participated in the process.

Headcount (Ongoing)(Improved performance rating) / Total performance ratings (Ongoing)*100

Can be useful in monitoring the success of learning and development strategies.

However, can be affected by changes in employees’ positions. For example, a recently promoted employee might receive a lower performance rating than they did in the last cycle when they were in a position at a lower classification level.





Qualifications Highest educational qualification profile

-Statistical Bulletin.-SOSR.-CLC Metrics (‘Educational attainment breakdown’, pp. 180 – 181).

The breakdown of total headcount (ongoing) by highest educational qualification received.

Can also be presented as the percentage of total headcount (ongoing) by highest educational qualification received.

Qualifications may include:-Less than year 10-Year 10-Year 11-Year 12-Basic vocational qualification-Skilled vocational qualification-Associate diploma-Undergraduate diploma-Bachelor degree-Postgraduate diploma-Masters-Doctorate

For each qualification type:Headcount (Ongoing) for which qualification type is the highest qualification received

Percentage breakdown:For each qualification type:

Headcount (Ongoing) for which qualification type is the highest qualification received / Total headcount (Ongoing)*100

Provides an indication of the level of educational attainment of the workforce.

Can assist in understanding the academic training or certification level requirements of key functions.

Learning and development

Time spent on learning and development type profile

-SOSR. The breakdown of time spent on learning and development by ongoing employees, by type of learning and development.

Can also be presented as the percentage of total time spent on learning and development by ongoing employees, by type of learning and development.

Types of learning and development might include:-coaching and mentoring-e-learning-formal training and education courses-on-the-job training-academic study-conferences and seminars-classroom workshops

For each learning and development type:FTE working days spent on learning and development type by ongoing employees

Percentage breakdown:For each learning and development type:FTE working days spent on learning and development type by ongoing employees / Total FTE working days spent on all learning and development types by ongoing employees*100

Useful in examining preferences, and level of demand for different methods of providing learning and development, to assist with development and implementation of future learning and development strategies.





Learning and development(Continued)

Participation rate in learning and development programs

-CLC Metrics (‘Development program penetration rate’, pp. 145 -147).

The number of ongoing employees who participated in learning and development programs as a percentage of the total number of ongoing employees who were eligible to participate in learning and development programs.

Headcount (Ongoing) who participated in learning and development programs / Average headcount (Ongoing)*100

Provides an indication of the extent to which eligible employees have the opportunity to participate in learning and development programs and the extent to which they utilise these opportunities.

Employee satisfaction with learning and development (by learning and development type)

-SOSR.-CLC Metrics (‘Employee satisfaction with training’, pp. 212 -213).

Staff survey results provide insight into the level of satisfaction of employees with access to and quality of different types of learning and development activities.

Provides an indication of the effectiveness of different types of learning and development, and the level of access.

Useful in informing development and implementation of learning and development strategies.

Workforce theme: Workforce engagement and intentionsCategory Metric Sources


Employee engagement

Staff survey results provide insight into employee attitudes and intentions and can assist with assessing levels of motivation, interest and enthusiasm for work, career aspirations, resignation and other exit intentions, etc.

Each organisation will have developed its own methodologies for measuring employee engagement and intentions, based on their own needs and circumstances.

Employee intentions

*Sources referenced in the development of the workforce metrics outlined in Appendix A include: -SOSR (State of the Service Report 2010–11).-Statistical Bulletin (APS Statistical Bulletin 2010–11).-CLC Metrics (‘The Metrics Standard: Establishing Standards for 200 Core Human Capital Measures’, Corporate Leadership Council, 2005).-Agency Survey (2012 State of the Service Agency Survey).-Budget website (Australian Government Budget 2011-12 website: http://www.budget.gov.au/2012-13/content/bp1/html/bp1_bst6-10.htm).


http://www.budget.gov.au/2012-13/content/bp1/html/bp1_bst6-10.htm


-WFP Guide (‘Australian Public Service Workforce Planning Guide’, Australian Public Service Commission, December 2011).-Job Family Model (‘Australian Public Service Job Family Model’, Australian Public Service Commission, December 2011).

Note: For a number of metrics outlined in the table above, a measurement unit of either headcount or full-time-equivalent number of employees is specifically suggested. This is based on the nature of the aspect of the workforce being measured, and the general purpose for measuring it. However, organisations will ultimately choose the unit of measurement that best suits their own needs and circumstances for each of the metrics and, in some cases, may utilise both.



Appendix B: Developing SMART goals7 (in the context of strategic workforce reporting)Paul J. Meyer describes the characteristics of S.M.A.R.T. goals in Attitude is Everything.8

Specific

The first term stresses the need for a specific goal over and against a more general one. This means the goal is clear and unambiguous; without vagaries and platitudes. To make goals specific, they must tell a team exactly what is expected, why is it important, who’s involved, where is it going to happen and which attributes are important.

A specific goal will usually answer the five "W" questions:

What: What do I want to accomplish?

Why: Specific reasons, purpose or benefits of accomplishing the goal.

Who: Who is involved?

Where: Identify a location.

Which: Identify requirements and constraints.

Measurable

The second term stresses the need for concrete criteria for measuring progress toward the attainment of the goal. The thought behind this is that if a goal is not measurable, it is not possible to know whether a team is making progress toward successful completion. Measuring progress is supposed to help a team stay on track, reach its target dates, and experience the exhilaration of achievement that spurs it on to continued effort required to reach the ultimate goal.

A measurable goal will usually answer questions such as:

How much?

How many?

How will I know when it is accomplished?

Attainable

The third term stresses the importance of goals that are realistic and attainable. While an attainable goal may stretch a team in order to achieve it, the goal is not extreme. That is, the goals are neither out of reach nor below standard performance, as these may be considered meaningless. When you identify goals that are most important to you, you begin to figure out ways you can make them come true. You develop the attitudes, abilities, skills, and financial capacity to reach them. The theory states that an attainable goal may cause goal-setters to identify previously overlooked opportunities to bring themselves closer to the achievement of their goals.

An attainable goal will usually answer the question:

7 Source: Wikipedia viewed 14 june 2012 http:en.wikipedia.org/wiki/SMART_criteria#cite_note-18 Meyer, Paul J (2003), ‘What would you do if you knew you couldn’t fail? Creating S.M.A.R.T. Goals’, Attitude is Everything: If You Want to Succeed Above and Beyond, Meyer Resource Group Incorporated.



How: How can the goal be accomplished?

Relevant

The fourth term stresses the importance of choosing goals that matter. A Bank Manager's goal to "Make 50 vegemite sandwiches by 2:00 pm" may be Specific, Measurable, Attainable, and Time-Bound, but lacks Relevance. Many times you will need support to accomplish a goal: resources, a champion voice, someone to knock down obstacles. Goals that are relevant to your boss, your team, and your organisation will receive that needed support.

Relevant goals (when met) drive the team, department, and organisation forward. A goal that supports or is in alignment with other goals would be considered a relevant goal.

A relevant goal can answer yes to these questions:

Does this seem worthwhile?

Is this the right time?

Does this match our other efforts/needs?

Are you the right person?

Time-bound

The fifth term stresses the importance of grounding goals within a time frame, giving them a target date. A commitment to a deadline helps a team focus their efforts on completion of the goal on or before the due date. This part of the S.M.A.R.T. goal criteria is intended to prevent goals from being overtaken by the day-to-day crises that invariably arise in an organisation. A time-bound goal is intended to establish a sense of urgency.

A time-bound goal will usually answer the question:

When?

What can I do 6 months from now?

What can I do 6 weeks from now?

What can I do today?



Appendix C: Acknowledgement of the contribution of agencies and departmentsThe following agencies and departments were consulted in the development of the APS Strategic Workforce Analysis and Reporting Guide.

The Australian Public Service Commission thanks those agencies and departments who contributed feedback and input, which has been invaluable in the development of this guidance.

APS Workforce Planning Working Group:

Attorney-General’s Department

Australia Agency for International Development

Australian Bureau of Statistics

Australian Communications and Media Authority

Australian Customs and Border Protection Service

Australian Security Intelligence Organisation

Australian Taxation Office

Department of Agriculture, Fisheries and Forestry

Department of Defence

Department of Education, Employment and Workplace Relations

Department of Families, Housing, Community Services and Indigenous Affairs

Department of Finance and Deregulation

Department of Foreign Affairs and Trade

Department of Health and Ageing

Department of Human Services

Department of Immigration and Citizenship

Department of Sustainability, Environment, Water, Population and Communities

IP Australia

APS Workforce Planning Practice Group:

Airservices Australia

Australian Centre for International Agricultural Research

Australian Competition and Consumer Commission

Australian Crime Commission



Australian Electoral Commission

Australian Federal Police

Australian Institute of Family Studies

Australian Institute of Health and Welfare

Australian National Maritime Museum

Australian Nuclear Science and Technology Organisation

Australian Pesticides and Veterinary Medicines Authority

Australian Radiation Protection and Nuclear Safety Agency

Australian Research Council

Australian Sports Anti-Doping Authority

Australian Transaction Reports and Analysis Centre

Australian War Memorial

Civil Aviation Safety Authority

Comcare

ComSuper

Department of Broadband, Communications and the Digital Economy

Department of Climate Change and Energy Efficiency

Department of the House of Representatives

Department of Infrastructure and Transport

Department of Innovation, Industry, Science and Research

Department of the Prime Minister and Cabinet

Department of Regional Australia

Department of Resources, Energy and Tourism

Department of Veterans’ Affairs

Family Court of Australia and Federal Magistrates Court

Food Standards Australia New Zealand

Geoscience Australia

Insolvency and Trustee Service Australia

Migration Review Tribunal and Refugee Review Tribunal

Murray-Darling Basin Authority

Museum of Australian Democracy at Old Parliament House

National Archives of Australia



National Film and Sound Archive

National Library of Australia

Office of Parliamentary Counsel

Office of the Australian Building and Construction Commissioner

Office of the Commonwealth Ombudsman

Productivity Commission

Safe Work Australia

The Treasury

Therapeutic Goods Administration
