Defence Ex-Service Organisation People Briefing Day Tuesday 17 May 2011
Major General Craig Orme AM, CSC Head of People Capability
Setting the Scene Defending Australia in the Asia Pacific Century White Paper outlines the Government’s strategy for the Defence of Australia, our People and their interests. It provides for a substantial investment in the military capabilities of the Australian Defence Force (ADF). As well as systems and platforms, building Force 2030 requires investment in People. Defence will need to attract its required share of the potential workforce.
Setting the Scene Generating the Future Force Force 2030 is built upon three foundation elements: the equipment, systems and associated support that provides the hard edge of military capability the People capability required to operate and support the equipment and systems, and to manage the business of Defence the delivery of Strategic Reform in Defence creating the capacity to re-invest in Defence Capability.
Strategic Reform in Defence The Strategic Reform Program
Developed by Defence Leadership and Government.
Will fundamentally overhaul the entire Defence enterprise.
Designed to create an agile, effective, efficient and accountable organisation.
Deliver Force 2030 in a sustainable form.
There are 15 streams, comprising of around 300 separate projects across Defence.
More than half the streams are NOT required to generate cost savings. Rather they are areas where Defence has identified opportunities for improvement.
Strategic Reform in Defence
Reform unleashes energy in the form of new ideas and a desire to make things better.
Under SRP, money has been put aside to invest in some of these ideas and to support skills development and process change.
There are three basic measures for assessing the SRP: • Cost reductions achieved; • no detrimental impact on capability, including safety; and • not breaking the organisation.
In order to meet all three measures at the same time, work must be done differently and that is the real point of the SRP.
Defence Workforce Overview Current People Position ADF Strength – 58,239 Navy – 13,849 (increase of 427) Army – 29,701 (increase of 452) Air Force – 14,689 (increase of 9) 13.7 percent female – up 195 personnel on last year Rolling Separation Rate of 7.6 percent (increase 0.6 percent) APS 22,145 – Rolling separation rate 7.0 percent (increase 1.3 percent)
People in Defence 2015
People in Defence is focused on 2015 because:
The new approaches we need to adopt are aligned to the Strategic Reform Program – they either support SRP or rely on it – and 2015 is the timeline for completion of the Workforce and Shared Services reform stream.
Achieving improvements in the delivery of outputs that matter to our people over the next four years is a prerequisite to building the Force of 2030.
Implementing the Blueprint THE TOTALITY OF THE DEFENCE PEOPLE STRATEGY
People in Defence Vision
How Do We Ensure We Get There?
People in Defence Initiatives
There are many initiatives under the People in Defence project, many of which are either well underway or finalised. Some of these include: • Developing new housing and accommodation assistance options to reduce the number of anomalies in the current policy. • Reviewing and enhancing rehabilitation and injury compensation policy and support • Implementation of the Defence Annual People Plan to help achieve People in Defence initiatives and keep us on track.
People in Defence Initiatives
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Driving cultural change through the New Generation Navy, Submariner Workforce Sustainability Review, Adaptive Army and Air Force – One Team reform strategies.
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Improving support to families through availability and services of Community Development Officers and enhancement of spousal employment support and children’s education support.
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Implementing programs to increase the retention of women.
Partnering to deliver People Commitments The Hon Warren Snowdon Minister for Defence Science and Personnel and Veterans’ Affairs
The Defence Employment Offer Major General Craig Orme AM, CSC Head of People Capability
Defence Employment Offer Project
As part of the overall People in Defence program, the Defence Employment Offer Project has been designed to help attract and retain our workforce. Our initial research has indicated that there are a number of areas where we need to look at what we are saying versus what we are doing to meet people’s expectations.
Defence Employment Offer Project
An effective employment offer is determined by a clear understanding of:
The elements of employment that people targeted by, and working in, the organisation value most;
The unique characteristics of an organisation that differentiate it from its competitors; and
The elements of employment that an organisation can confidently deliver.
Defence Employment Offer Project
In 2008 DEPSEC PSP articulated a series of ‘brand promises’ or foundation commitments, which can be seen as the initial steps towards the concept of an employment offer.
These brand promises provide a focus for delivering key elements of the Defence people strategy.
Defence Employment Offer Project Findings on Importance – Core DEO elements The core DEO elements rated as most important for Defence personnel overall were (in order of priority): Opportunity Reward People Work Organisation
Defence Employment Offer Project Top five employment sub-elements by importance - by Service TOP 5 EMPLOYMENT SUB ELEMENTS BY IMPORTANCE DEFENCE - WIDE JOB SECURITY - JOB SATISFACTION - RESPECT - TRAINING AND DEVELOPMENT - HEALTH AND WELLBEING
Navy Job Satisfaction Training & Development Respect Career Management Location Remuneration – Non Salary
Army Job Satisfaction Job Security Leave Retirement Benefits Remuneration – Salary Remuneration – Non Salary
Air Force Job Satisfaction Job Security Career Management Health &Well-being Promotion
Army Reserves Training & Development Community & Country Job Security Collegial Work Environment Leader Quality
APS Respect Fairness Job Security Job Satisfaction Promotion
ADF Job Security Job Satisfaction Training & Development Health & Wellbeing Career Management
Defence Employment Offer Project The top 11 subcategories within the DEO framework that members have rated as important are: • • • • • • • • • • •
Job Security Job Satisfaction Respect Training & Development Health & Wellbeing Fairness Promotion Leader Quality Remuneration – Salary Work-Life Balance Career Management
(Opportunity) (Work) (Organisation) (Opportunity) (Organisation) (Organisation) (Opportunity) (People) (Reward) (Work) (Opportunity)
Defence Employment Offer Project
Where to now? ď‚&#x;
A communications working group has been established to commence building the communications and marketing strategies.
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Further validation of original findings.
QUESTIONS
Support for Wounded Injured or Ill Program SWIIP Major General Craig Orme AM, CSC Head of People Capability
Background
Early 2010 Head People Capability and Commander Joint Health Command agreed the need to review the support process for injured or ill ADF members
As a consequence the Support for Injured or Ill Project (SIIP) was conducted between Aug and Dec 10
SIIP included a gap analysis against best practice of Defence, single Service and DVA policies, processes and services
Existing Support Process CCPS OHSMIS
DEFCARE JEDHI
OHSCAR
JEDHI
rlike
TECHNOLOGY
Link up functions
Wa
LEGISLATION
DEPSEC PSP VCDF
Occupational Health & Safety Act
Non -wa rlike
OWNER
Workplace Safety
ADF Health
VCDF CJHLTH
Rehabilitation Compensation
VCDF CJHLTH
DVA
Military Rehabilitation & Compensation Act Safety, Rehabilitation & Compensation Act
Pea ce t ime
ELEMENT
JP2080 - PMKeys
CADET
Veterans Entitlements Act
Transition
DSG
A Coordinated Effort
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The review concluded that the system is generally good and results in high return-to-work rates for rehabilitated ADF members
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It also concluded that more coordination and integration of Defence and DVA programs would improve outcomes for members and their families/carers
Current Situation
A second phase (renamed Support for Wounded, Injured or Ill Project (SWIIP) will be conducted during 2011
SWIIP will implement the recommendations of the gap analysis and develop a structure around which to build a coherent, effective and efficient support system
SWIIP is a joint Defence and DVA program
The Future Support System – Guiding Principles The aim of SWIIP is to realise a support system that complies with the following Principles: • The system works for the member while enabling ADF capability • The system promotes a culture of resilience, rehabilitation and recovery • The system is family friendly, recognising the role of the member’s family and/or significant carer in the member’s rehabilitation • The system shields the individual and their families or carers from its inherent complexity • The system enables the Services to fulfil their moral obligation to the ADF member during and after service
Guiding Principles
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The system addresses the long-term effects of operational service
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The system facilitates improvement in Occupational Health and Safety performance
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The system enables the earliest possible notification and reporting between Defence and DVA to enable liability to be determined
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The system facilitates DVA establishing a relationship with the ADF member
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The system meets the needs of all parties, providing open access to information unless legislative restrictions on access apply
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The system is enduring
SWIIP is Not Just Another ‘Good Idea’
SWIIP is more than just another project
At SWIIP’s heart is an agenda for change – a fundamental shift in culture in both Defence and DVA
SWIIP is about a truly joint approach to the provision of support to wounded, injured or ill ADF members
QUESTIONS
ADF Housing Ms Sylvana Bell Director Housing and Removals Policy
Housing Assistance Overview
Housing assistance policy objectives and rational
Key components of housing assistance
Home ownership assistance
Future policy direction
Policy Objectives and Principles
Commonwealth Housing Goals 1985 ď‚&#x;
principal goal - to provide housing that is required for the efficient and effective operation of the Defence force that is equitable, efficiently administered, and cost-effective
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subsidiary goal - to compensate for the housing disability caused by the Defence requirement for members and their families to frequently relocate
Why is housing assistance provided?
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To support Defence capability;
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To compensate for the requirement to relocate frequently; and
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Allow members and their families to be part of the local community (whenever possible).
Key Components
Living-in Accommodation
Rent Allowance
Service Residences
Home Ownership Assistance
Defence Home Ownership Assistance Scheme
introduced on 1 July 2008
a targeted ADF Retention measure (increased subsidy for longer service)
subsidy on the interest component of a home mortgage
administered by Department of Veteran’s Affairs
DHOAS
Home Purchase Assistance Scheme ď‚&#x;
grant to assist with the first home purchase while in the ADF
Home Purchase/Sale Expense Allowance ď‚&#x;
reimbursement of the expenses incurred in buying and selling a home on posting
Future Policy Direction
contemporary policies to support ADF capability (including attraction and retention)
strategic contract management that is appropriately funded by Government
access to quality housing that meets ADF member needs and matches community standards
greater flexibility of housing options for members
Remuneration Military Salaries and Allowances CAPT Angela Bond (RAN) Director Military Salary and Allowances Policy
Military Salaries and Allowances
structure of ADF Remuneration
the Defence Force Remuneration Tribunal
Remuneration Reform Program
salaries – GOPS, GORPS and other Pay Cases
Strategic Allowance Review
Workplace Remuneration Arrangements
Structure of ADF Remuneration
The current ADF allowance system has two discreet jurisdictions under the Defence Act 1903 • the Ministerial power of determination (Section 58B); and • the Defence Force Remuneration Tribunal (DFRT) power of determination (Section 58H).
Structure of ADF Remuneration
• The current Australian Defence Force allowance system has two discreet jurisdictions under the Defence Act 1903; the Ministerial power of determination (Section 58B) and the Defence Force Remuneration Tribunal (DFRT) power of determination (Section 58H).
Structure of ADF Remuneration
Section 58B benefits
compensatory in nature
compensate members for the exigencies of Service life
Section 58H allowances
remunerative in that they recognise the conditions under which work is performed.
The Defence Force Remuneration Tribunal
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established by statute on 25 October 1984 with the enactment of legislation amending the Defence Act 1903
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determine the salaries and relevant allowances to be paid to both Regular and Reserve Force members
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biennial review of both salaries and salary-related allowances
Benefits of the DFRT
Allows for a more equitable remunerative system for ADF members ď‚&#x; independent, statutory body ď‚&#x; able to remain largely free from political influence in the determination of ADF salaries and allowances
Remuneration Reform Program
6 Phases •
Phase 3 – GOPS
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Phase 4 – GORPS
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Phase 5 - Specialist Pay Cases
Remuneration Reform Program RRP pay structures based on establishing employment categories categories are classified by job family & inter-family relationships
Placement within these families is dependant upon assessments of rank and work value ADF capability and internal relativities external comparisons to meet market-force demands
Regular reviews conducted by the Defence Force Remuneration Tribunal may result in increased pay for members
Remuneration Reform Program – Phases 1 & 2
Phase One
quantification of the Qualification and Skill, and Disability components of the major environmental allowances
phase concluded in mid-2003
Phase Two
the Qualification and Skill elements of the major environmental allowances were made superannuable
Remuneration Reform Program – Phase 3
Stage One • •
development of new graded pay structures for officers and Warrant Officers Class One new structures were approved on 5 October 2006
Stage Two • •
placement of all officers and Warrant Officers in the new pay structures (with effect 9 August 2007) provided increased pay for many Officers and Warrant Officers
Remuneration Reform Program – Phase 3
Graded Officer Pay Structure
recognises Rank and Skill
10 Pay Grades
differentials approx 4k+ (informed by roll-in of Q&S Allowances)
single Service placements
based on internal relativities
command valued differently between Services
Remuneration Reform Program – Phase 4 Stage One • • •
16 graded pay structure for Other Ranks Qualification and Skills elements of allowances rolled into salary implemented on 9 August 2007
Stage Two • • •
10 graded pay structure for Other Ranks and Warrant Officers pay improvements - up to 10% for specific employment categories effective from 4 September 2008
Modernisation of trainee pay rates • • •
changing the percentage discounts introduction of a Trainee Allowance to compensate for disabilities incurred while undergoing training effective from 8 January 2009
Remuneration Reform Program – Phase 4
Summary • • • • • • • •
Graded Other Ranks Pay Structure recognises Rank and Skill 10 Pay Grades Tri-service “Family Placements” based on work value / internal relativity similar placement for like trades differentials grow from PG 2 onwards WO1(E) covered by separate structure that is an extension of GORPS
Remuneration Reform Program – Phase 5 Modernisation of Aircrew remuneration Introducing an Officer Aviation Remuneration Structure Aviation Officers choose between: • a career tailored from progression to senior levels • one that priorities specialist employment in a flying/air traffic control console operator employment
Air Traffic Controller and Aircrew Capability Allowances
designed to address ADF capability demands effective from 1 October 2009
Salary Reviews Outside of RRP
Star Ranks
Service Warrant Officers
Medical Officer
Specialist Officer
Recent Pay Cases
Star Ranks Remuneration Arrangements
Introduced
senior officer graded structure (17 March 2011)
senior specialist Medical Officer structure (17 March 2011)
individual remuneration for senior specialist Legal and Dental Officers
Service Warrant Officer Remuneration
currently covered by Individual Determinations in Tier D of the Warrant Officer Class 1 (E) pay structure
proposal has been made to the DFRT
simplify remuneration arrangements for Service Warrant Officers
introduces a single pay point
Medical Officer Remuneration
Medical Officer Specialist Officer Career Structure was reviewed in 2010
salaries benchmarked against public sectors and increased to be competitive with but not equal to public sectors
increment points added to two competency levels
procedural specialist pay point introduced
Review of the Specialist Officer Career Structures Specialist Officer Career Structures covering: • Legal • Dental • Medical Officers • Chaplains Introduced between 2002 and 2003 Competency based with a rank overlay Structures to be: • reviewed in 2011 • presented to DFRT in 2012
Recent Pay Cases
ADF Investigators
Physical Training Instructors
Ground Base Air Defence
Surveillance Target Acquisition
Royal Australian Infantry Corps
Air Base Protection
Aviation Support
Maritime Warfare Officer/Maritime Combat Officer
Remuneration Reform Program – Phase 6
Strategic Allowance Review Review of all Defence Act 1903 section 58H Allowances Incorporates: •
previously postponed biennial reviews of individual allowances
•
a holistic look at the overall structure, quanta and contemporary validity of the allowances
QUESTIONS
Continued Engagement A Way Forward MAJGEN Craig Orme AM, CSC Head People Capability