Human Resource Capability Survey of Public Service Departments. As at 30 June 2009

Transcription

1 Human Resource Capability Survey of Public Service Departments As at 30 e 2009

2 Published by the State Services Commission PO Box, Wellington, New Zealand November 2009 ISBN (PDF) ISBN (HTML) Crown copyright This work is licensed under the Creative Commons Attribution 3.0 New Zealand licence. In essence, you are free to copy, distribute and adapt the work, as long as you attribute the work to the Crown and abide by the other licence terms. To view a copy of this licence, visit Please note that no departmental or governmental emblem, logo or Coat of Arms may be used in any way that infringes any provision of the Flags, Emblems, and Names Protection Act ( Attribution to the Crown should be in written form and not by reproduction of any such emblem, logo or Coat of Arms. 2

3 Contents Executive Summary... 4 Background... 5 Changes to the HRC survey and survey reporting... 5 Section 1: Staff Numbers... 6 Staff numbers in the Public Service... 6 ember 2008 staffing survey... 7 Staff changes by department over the six months to 30 e Staff changes by department over the twelve months to 30 e Staff numbers by occupation... 8 Section 2: Recruitment and retention... 9 Recruitment... 9 Turnover... 9 Tenure (length of service) Redundancies Section 3: Pay and Benefits Annual salary movement Comparison with salary movements from the Labour Cost Index Performance pay Superannuation Section 4: Equality and diversity Ethnicity Women in the Public Service Diversity in senior management Gender and ethnicity pay gaps Section 5: Leave Annual leave and department day entitlements Sick leave taken Parental leave Section 6: Employment in the public sector Public sector employment Wages and salaries in the public sector Skill supply and demand Appendix 1: Full-time equivalent employees by department, Appendix 2: Percentage of Women, Māori, Women in senior management, fixed term and collective agreements by department, e Appendix 3: Occupations in the HRC Customised Occupation Groups Appendix 4: Definitions Appendix 5: Establishment Numbers for Public Service Departments and Selected Crown Entities at 30 e 2009 and 31 ember

4 Executive Summary This report provides a summary of workforce statistics on the Public Service 1, as at 30 e The report covers six main topics: staff numbers, recruitment and retention, pay and benefits, equality and diversity, and leave in the Public Service, and employment in the wider public sector. In the last six months (1 January to 30 e 2009), the number of Full Time Equivalent (FTE) employees in the Public Service decreased by 625 FTEs (1.4 percent). In the previous six months (1 July to 31 ember 2008), FTE numbers increased 1,728 FTEs (4.0 percent). The change for the full 2008/09 year was an increase of 1,103, from 43,569 to 44,672 (2.5 percent). The largest annual increase was for the Department of Corrections which employed an additional 311 FTEs. Annual increases of more than 100 FTEs were recorded for the Inland Revenue Department (145), the Department of Internal Affairs (125), and the Ministry of Foreign Affairs and Trade (110). Almost all of the growth in Public Service FTEs occurred in the first six months of the survey period which was before the cap on core government administration was in place. Core unplanned turnover dropped from 15 percent to 11 percent. This is the largest annual decrease since the HRC survey began in Most of the decrease in turnover occurred in the six months between 1 January 2009 and 30 e The occupation with the largest drop in turnover was public relations professionals. While there has been a significant decrease in the overall turnover rate, there is still a wide variation in turnover rates by department (4.6 percent to 27.3 percent). The overall decrease in core unplanned turnover was driven by decreases in 27 of the 35 departments. There was also a significant decrease in recruitment for the year to 30 e 2009 as a result of a drop-off in numbers towards the end of the financial year. There were 362 new recruits in the month of e 2009, just over half the number who started in the previous e. Public servants are staying in their jobs for longer. The average length of service across all permanent public servants has increased to 8.2 years, up from 8.0 years a year ago. While this increase of just less than 3 months may seem small, it represents the largest annual increase in tenure since the survey began in In the year to 30 e 2009, 301 employees in the Public Service were made redundant; an increase of 82 percent from This is the highest number of redundancies since 2000, when 781 employees in the Public Service were made redundant. The average base salary in the Public Service increased by 5.3 percent to $62,713 (from $59,532 in 2008). This movement represents the real change in Public Service salaries and includes progression through salary bands, promotions, new appointees coming in at market rates, and compositional changes to the Public Service workforce. A smaller increase of 3.5 percent was recorded in the Labour Cost Index for the Public Service (2.7 percent in the private sector). The Labour Cost Index measures a fixed set of jobs and is adjusted to remove the impact of progression and promotion. The Labour Cost Index data for the Public Service shows that most of the annual salary movement occurred between July and ember The Public Service covers those departments listed in the First Schedule of the State Sector Act There were 35 departments as at 30 e 2009 and these are listed in Appendix 1. 4

5 In the year to 30 e 2009, full time permanent employees took an average of 7.5 days of sick and domestic leave. This is the highest average number of days recorded since the data was first collected in Background The information in this report comes mainly from the Human Resource Capability (HRC) survey, which has collected anonymous unit-record data on staff 2 in Public Service departments since Data from Statistics New Zealand s labour market surveys are also used to allow comparisons with the labour force as a whole. Changes to the HRC survey and survey reporting This year the total number of vacancies in each department has also been collected. This change was required because of the introduction of a cap on the number of positions in core government administration. The cap is based on the number of FTE positions which includes both FTE employees and vacancies. To allow for timelier reporting, data on the Public Service and core government administration workforce is being released in two parts. This report is the second part, and provides more detailed analysis of the Public Service workforce. The first part focused on the number of FTE positions within the cap on core government administration and the number of staff working in communications roles (see Figure 1 shows the difference between Core Government Administration and the Public Service and the different sets of organisations covered in the report on capping and this HRC report, respectively. The results from the capping report are included as Appendix 5. Figure 1: Core Government Administration and the Public Service Capping report part one Public Service Core Government Administration Corrections: Community Probation & Psychological Services Prison Services Social Development: Child Youth & Family Work & Income 33 Public Service departments plus: other parts of Corrections other parts of the Ministry of Social Development 5 Crown Entities: TEC NZQA HNZC NZTA NZTE HRC report part two 2 The survey includes all permanent and temporary employees but does not include contractors or employees who work on a casual or as-required basis. 5

6 Section 1: Staff Numbers Staff numbers in the Public Service In the year to 30 e 2009, the number of FTE employees in the Public Service increased by 1,103 to 44,672 (2.5 percent). This can be broken down into an increase of 1,728 FTEs (4.0 percent) between 30 e 2008 and 31 ember 2008 and a decrease of 625 FTEs (-1.4 percent) between 1 January 2009 and 30 e The six month change, annual change and the longer term trend in FTEs and headcounts are shown in Table 1 and Figure 2. Although at 30 e 2009 the proportion of the Public Service on fixed term contracts was down slightly to 5.9 percent, this proportion has remained fairly stable over the previous 5 years. Table 1: Public Service employment (FTEs and headcounts), 2004 to 2009 e 2004 e 2005 e 2006 e 2007 e 2008 ember 2008 e 2009 FTE Open-term 33,131 35,231 37,340 39,499 40,879 Not collected 42,054 Fixed-term 2,514 2,801 2,773 2,548 2,690 Not collected 2,618 Total FTE 35,645 38,032 40,113 42,047 43,569 45,297 44,672 Percentage change from previous period (%) Open-term 34,477 36,612 38,661 40,976 42,404 Not collected 43,699 Headcount Fixed-term 3,388 3,713 3,607 3,359 3,530 Not collected 3,353 Total headcount 37,865 40,325 42,268 44,335 45,934 47,529 47,052 Percentage change from previous period (%) This percentage is based on the change over the six months to e The annual figure to 30 e 2009 is 2.5 percent In ,035 employees were reclassified from casual employees (outside of the survey scope) to permanent or temporary employees. Without this change the percentage increase in headcount for 2004 would have been 7 percent. This percentage is based on the change over the six months to e The annual figure to 30 e 2009 is 2.4 percent 6

7 Figure 2: Public Service Staffing, 2004 to ,000 Number 45,000 40,000 35,645 38,032 40,113 42,047 43,569 38,859 45,297 37,457 44,672 35,000 Public Service FTEs Positions (FTEs and Vacancies) in core government administration 30, Date ember 2008 staffing survey In ember 2008, a brief HR survey collected staff FTE numbers, headcounts and vacancies within each occupation and was used to set the baseline for the cap on core government administration of 38,859 FTE positions. The staff numbers section of this report draws on the ember data to examine changes over the six months to 30 e The rest of the analysis in this report is primarily based on annual figures collected through the full HRC survey as at 30 e Staff changes by department over the six months to 30 e 2009 Between 31 ember 2008 and 30 e 2009, 23 departments recorded either a decrease or no change in their FTE numbers (ranging from 0 percent to percent). The most noticeable change was the decrease of 328 FTEs at the Department of Conservation due to the seasonal nature of the work. On the other hand, twelve departments recorded increases in their FTE numbers during the six months to 30 e 2009 (ranging from 0.19 percent to 4.4 percent). In the majority of these departments, the additional FTEs were due to filling vacant positions that were carried at 31 ember 2008, not the creation of new positions. More detail on the number of FTEs in each department as at 30 e each year between 2004 and 2009, and at 31 ember 2008, is provided in Appendix 1. The cap on core government administration included the number of FTEs at 31 ember 2008 plus vacancies so the filling of vacancies during this period would not have breached the cap. Staff changes by department over the twelve months to 30 e 2009 During the 12 months to 30 e 2009, the number of FTE employees in the Public Service increased by 1,103. Twenty departments had an increase over the full year. The department with the largest annual increase in staffing was the Department of Corrections which increased by 311 FTEs. The Department of Corrections is one of the two departments with the majority of staff outside the cap on core government administration. The cap on core 7

8 government administration was set in the middle of the survey period (31 ember 2008). Three departments within the cap recorded annual increases of over 100 FTEs. These departments were the Inland Revenue Department (145), the Department of Internal Affairs (125), and the Ministry of Foreign Affairs and Trade (110). The increase of 88 FTEs for Statistics NZ was largely due to a reclassification of survey interviewers from casual to permanent which meant they were included in the HRC survey for the first time in Staff numbers by occupation This is the third year occupational information has been collected using the Australian and New Zealand Standard Classification of Occupations (ANZSCO). An HRC customised occupation grouping is used to report on occupations in the Public Service. This customised grouping has been created to better reflect the types of roles in the Public Service. A breakdown of the most common occupations in these customised groups is provided in Appendix 3. The ember 2008 staffing survey collected data on the occupational composition of the Public Service, and prompted a number of departments to re-examine their ANZSCO coding to more accurately reflect the roles and functions of their staff. This resulted in the numbers of some occupational groups changing significantly. Table 3 shows the FTE staff numbers in each group as at 30 e 2008, 31 ember 2008 and 30 e An assessment of whether a shift towards frontline roles has occurred will be undertaken as part of a review of the policy of capping core government administration. This review will be conducted in February 2010 and will include consideration of occupation data as at 31 ember 2008, 30 e 2009 and 31 ember Table 3: FTEs by HRC occupation group HRC customised occupation groups 30 e ember e 2009 Managers 7 5,135 5,048 5,081 Policy Analysts 3,403 2,847 2,836 Information Professionals 2,350 3,020 3,113 Social, Health and Education Workers 6,988 7,696 7,737 ICT Professionals and Technicians 1,843 2,182 2,119 Legal, HR and Finance Professionals 2,405 2,088 2,170 Other Professionals not elsewhere included 8 2,141 2,573 2,008 Inspectors and Regulatory Officers 8,698 9,586 9,245 Contact Centre Workers 9 1,951 4,383 4,527 Clerical and Administrative Workers 9 8,190 5,405 5,472 Other Occupations Unknown Total 43,569 45,297 44, The ember 2008 staffing survey prompted a number of departments to re-examine their ANZSCO coding to more accurately reflect the roles and functions of their staff. This group includes communications managers. This group includes communications staff in non-management roles. The change between 30 e 2008 and 31 ember 2008 is due to the reclassification of IRD Clerical and Administrative Workers to Contact Centre Workers. 8

9 Section 2: Recruitment and retention Recruitment In the year to 30 e 2009, 8,931 employees were recruited by Public Service departments. This is the lowest number of new recruits in the past five years and represents a drop of 19.3 percent from the number recruited in Table 4 shows the number of new employees since Table 4: Number of new employees, 2004 to Number of new employees 9,184 10,622 11,465 10,615 11,062 8,931 Recruitment numbers for the first five months of the 2008/09 financial year were consistent with the previous year when, on average, 922 people where recruited each month. The usual seasonal decrease occurred in ember 2008, followed by a clear decrease in the usual pattern of recruitment during the first six months of By e 2009, there were only 326 new recruits, just over half of the number of people who started in e Figure 3 shows the trend in recruitment over the 12 months to 30 e Figure 3: Number of new employees by month Number of New Recruits Monthly Average: Jul-08 Aug Oct-08 Nov Jan-09 Feb Apr-09 May Starting Month Turnover Core unplanned turnover has dropped by 4 percentage points over the year to 30 e 2009 (from 15 percent in 2008 to 11 percent in 2009). This is the first decrease in core unplanned turnover since the 2006 survey. Table 5 shows the gross and core unplanned turnover rates for the Public Service from 2004 to

10 Table 5: Turnover rates in the Public Service, 2004 to Gross turnover rate (%) Core unplanned turnover rate 10 (%) Male core unplanned turnover rate (%) Female core unplanned turnover rate (%) Core unplanned turnover was below last year s value of 15 percent for each month in the year to 30 e The monthly figures also showed a marked downward trend as the year progressed. Figure 4 shows monthly turnover rates which have been annualised (multiplied by 12) so they can be compared with the annual core unplanned turnover rate. Figure 4: Core unplanned turnover by month (figures have been annualised) 16% 14% Turnover (core unplanned) 12% 10% 8% 6% 4% 2% 0% Annual Turnover: 11% Jul-08 Aug Oct-08 Nov Jan-09 Feb Apr-09 May Month While there has been a significant decrease in the overall turnover rate, there is still a large variation in annual turnover rates for individual departments (4.6 percent to 27.3 percent). The overall decrease in core unplanned turnover was driven by decreases in 27 of the 35 departments; decreases ranged from 0.2 to 15.1 percentage points. Eight departments recorded increases in core unplanned turnover ranging from 1.1 to 3.6 percentage points. Turnover rates by occupation were examined in those occupations with over 100 employees. Smaller occupations are excluded because of volatility from year to year. Table 6 shows the occupations with the highest turnover rates in the Public Service, based on the most detailed level of the ANZSCO. Call or contact centre operators and human resource advisors were also in the five occupations with the highest turnover in Core unplanned turnover is defined in Appendix 4 10

11 Table 6: Highest turnover rates (core unplanned) by occupation Occupation (ANZSCO 6 th digit) Core unplanned turnover Call or contact centre operator (%) 20 Management accountant (%) 18 Human resource advisor (%) 17 Finance manager (%) 15 Education advisor (%) 14 The drop in turnover has occurred across nearly all occupations. Out of the 44 occupations 11 with enough employees to make a reliable comparison, only four occupations showed increases in turnover. One turnover rate remained constant, and 39 decreased. The largest decrease was in the public relations professional occupation. Most communications employees are coded as public relations professionals 12. Communications employees are the only group being specifically monitored in the cap on core government administration. The five occupations with the largest decreases are shown in Table 7. Table 7: Largest decreases in turnover (core unplanned) by occupation Occupation (ANZSCO 6 th digit) Difference (percentage points) Public relations professional (%) Accounts clerk (%) ICT business analyst (%) Human resource manager (%) Human resource adviser (%) Tenure (length of service) The 2009 HRC data shows that average tenure has increased to 8.2 years (from 8.0 years in 2008). This is likely to be the result of lower turnover and fewer new recruits. While this increase of 82 days service may seem small, it represents the largest annual increase in tenure since the survey began in The trend since 2004 is shown in Table 8. Table 8: Tenure in the Public Service, 2004 to Tenure (years) Change from previous year (days) Occupations that are present in less than 3 departments, and occupations with less than 100 staff, have been excluded. The other codes used for communications staff are: Advertising Manager, Public Relations Manager, Sales and keting Manager, ket Research Analyst and keting Specialist. 11

12 Redundancies In the year to 30 e 2009, 301 employees in the Public Service were made redundant. This is the highest number in five years and represents an 82 percent increase from The average surplus payment amount was down from the past two years to $38,966. On average, the 301 people who were made redundant had less service and a lower salary than those made redundant in the previous year. These factors both contributed to a reduction of the average redundancy payment, which decreased by $8,516 from the previous year to $38,966. The number of redundancies and average redundancy payment is shown in Table 9. Table 9: Redundancies and average payments, 2004 to Number of redundancies Average Payment ($) 37,567 40,621 37,268 45,645 47,482 38,966 Payment as a percentage of average base salary (%) The number of redundancies varied across the year. Figure 5 shows that in the six months to 30 e 2009 there were 170 Public Service redundancies, compared with 131 in the previous six months. Looking back at the monthly redundancy figures over the five years to 30 e 2009 shows that the 70 redundancies in e 2009 was the highest number of any month in this period. Twenty four departments had staff redundancies in the year to e The average age of those made redundant was 48.5 years. The occupation groups with the largest numbers of redundancies were Managers (76), Clerical and Administration Workers (47), Inspectors and Regulatory officers (36) and Information Professionals (31). Figure 5: Redundancies by month Number of Redundancies Jul-08 Aug Oct-08 Nov Jan-09 Feb Apr-09 May Month 12

13 Section 3: Pay and Benefits Annual salary movement As at 30 e 2009, the median base salary for public servants was $54,529 ($51,000 in 2008). The average base salary increased by 5.3 percent to $62,713 (from $59,532 in 2008). The trend since 2004 is shown in Table 10. Table 10: Average and median salary (2004 to 2009) Median salary ($) 42,310 43,700 45,900 48,343 51,000 54,529 Average salary ($) 48,915 50,884 53,948 56,619 59,532 62,713 Percentage change in average salary (%) The data collected for the HRC survey provides a snapshot of the base salaries in the Public Service as at 30 e each year. Most departments make remuneration decisions and adjustments during August and tember based on performance related to the previous financial year. Therefore, most of the 5.3 percent increase in average salary would have occurred in the two months after the previous survey (30 e 2008), before the full impact of the global recession was felt, and well before the Government s Expectations for Pay and Employment Conditions in the State Sector were issued (February 2009). Comparison with salary movements from the Labour Cost Index To supplement the annual HRC survey salary information, the State Services Commission purchases a customised report from Statistics New Zealand s Labour Cost Index (LCI) to monitor the movement in Public Service wages and salaries on a quarterly basis. This customised LCI covers the same set of employees as the HRC survey and measured an increase of 3.5 percent for the Public Service in the year to 30 e This 3.5 percent increase was higher than the private sector increase of 2.7 percent for the same period. The difference between the 5.3 percent increase in the average salary for the Public Service and the 3.5 percent increase in the LCI reflects the difference in methodology between the two measures. The LCI measures the quarterly change in the price for a fixed set of jobs; adjustments are made to ensure the same set of jobs is priced each time. The change in the Public Service average salary is the real change, and includes the impact of progression through salary bands, promotions, new appointees coming in at market rates, and compositional changes to the Public Service workforce. The relationship between the HRC and LCI measures is shown in Figure 6. Although covering the same set of employees, the HRC figure has been, on average, 1.9 percentage points higher than the LCI over the past nine years (1.8 percentage points in 2009). This difference is primarily due to the adjustment made in the LCI. The customised LCI data provides the only indication of how the average salary in the Public Service has changed on a quarterly basis. The LCI annual movement of 3.5 percent in Public Service wages and salaries is made up of four quarterly movements of 1.8 percent (July 2008 to tember 2008), 1.4 percent (October 2008 to ember 2008), 0.2 percent (January 2009 to ch 2009) and 0.2 percent (April 2009 to e 2009). The 1.8 percent movement during the three months to tember 2008 was the largest quarterly movement in Public Service 13

14 wages and salaries since the base year in 2001 (the 1.4 percent movement between October 2008 and ember 2008 was the third largest). The current annual salary movement is driven by the large quarterly movements that occurred between July and ember Figure 6: Public Service average salary and LCI movements, 2001 to % 8% 7% 6% 5% 4% 3% Public Service (LCI): Quarterly Movement (adjusted) Public Service (HRC): Annual Movement (unadjusted) Public Service (LCI): Annual Movement (adjusted) HRC Survey Period (2008/09) 5.3% 3.5% 2% 1.8% 1.4% 1% 0% 0.2% 0.2% Performance pay Both the frequency and amount of lump sum performance payments decreased during the year to 30 e Twenty six departments made performance payments and 11 percent of public servants received them (down from 14 percent in 2008). The average amount was $2,412 (down from $2,570 in 2008). The trend since 2006 is shown in Table 11. Table 11: Lump sum performance payment, 2006 to Number of staff receiving performance payment 7,403 7,978 6,285 5,354 Percentage of staff receiving performance payments (%) Average value of performance payments ($) 2,521 2,251 2,570 2,412 Superannuation As at 30 e 2009, 63 percent of permanent public servants were members of at least one employer subsidised superannuation scheme (up from 58 percent in 2008 and 51 percent in 2007). Figure 7 shows the proportion of public servants in each scheme (or multiple schemes). After more than doubling to 37 percent in 2008, the percentage of fixed-term public servants 13 Chief Executives are excluded from all figures. Figures reported last year have been revised. 14

15 on an employer subsidised superannuation scheme this year has increased further, to 56 percent. This significant rise can be attributed to the automatic enrolment feature of KiwiSaver. Figure 7: Subsidised superannuation scheme membership, 30 e 2009 Multiple Schemes 1.2% Other Schemes 2.5% GSF 4.1% Non Members 37.4% State Sector Retirement Saving Scheme 37.1% KiwiSaver 17.7% 15

16 Section 4: Equality and diversity Ethnicity The ethnic diversity of the Public Service is shown in Table 12. The representation of the Asian ethnic group in the Public Service increased again in the year to 30 e 2009, although at a slightly slower rate compared to the past 5 years. If the Asian ethnic group continues to increase at similar rates it will overtake Pacific peoples as the third largest ethnic group in the Public Service within the next two years. Representation of Māori and Pacific peoples has declined a little, while that of European and Other Ethnic Groups increased over the past year. Table 12: Representation of ethnic groups 14 in the Public Service, Māori (%) Pacific peoples (%) Asian peoples (%) European, including NZ European (%) Middle Eastern, Latin American, African (%) Other Ethnic Groups, including those responding as New Zealanders (%) Women in the Public Service The proportion of women in the Public Service as at 30 e 2009 was 59 percent (compared with 47 percent in the employed labour force). The type of work in the Public Service may partly explain this high representation as many Public Service occupations such as social workers, case workers and clerical and administration workers have a high representation of women in the wider labour market. The proportion of women in each Public Service department is shown in Appendix 2. The age profiles for men and women in the Public Service differ. The average age of women as at 30 e 2009 was 42.4 years, whereas the average age of men was 44.5 years. A higher proportion of women (22.3 percent) were aged years compared with men (18.6 percent). Diversity in senior management Table 13 shows the proportion of women, Māori, Pacific, and Asian peoples in senior management roles (tier 1, 2, and 3). The proportion of women in senior management as at 30 e 2009 decreased to 37.7 percent (down from 38.3 percent in 2008). Representation of Māori in senior management also decreased, while representation of Pacific peoples and Asian peoples increased a little. As at 30 e 2009, 25 percent of senior managers in the Public Service were aged over 55 years (18 percent in the Public Service) and the average age of senior managers was 49.6 years (43.3 years in Public Service) Ethnicity is recorded and reported based on the Statistics New Zealand Statistical Standard for Ethnicity People recording more than one ethnic group are counted multiple times. Percentages in Table 12 are of those with a known ethnicity. Since the 2008 survey, a new payroll system was introduced at IRD. As part of this change employees had the option to review their ethnicity which resulted in reduction in the proportion of employees with an unknown or unrecorded ethnicity and an increase in the number of employees responding as New Zealander. 16

17 Table 13: Diversity in senior management, 2004 to Public Service Workforce (2009) Women (%) Māori (%) Pacific peoples (%) Asian peoples (%) Gender and ethnicity pay gaps As at 30 e 2009, the average salary for men in the Public Service was $68,983 and $58,362 for women. The gender pay gap remained at 15.4 percent, the same as the previous year. The rate of increase in average salary was 5.3 percent for both men and women. The gender pay gap in the Public Service for the years 2004 to 2009 is shown in Table 14. Table 14: Gender pay gaps, 2004 to Gender Pay Gap (%) Some of this pay gap can be attributed to the occupation and gender composition of the Public Service. Pay gaps by occupation group are lower than the overall pay gap, and range from 1.7 percent for contact centre workers through to 12.9 percent for managers. Table 15 shows ethnic pay gaps in the Public Service. The pay gap between Māori and non- Māori decreased from 12 percent to 11 percent. The pay gap between Pacific peoples and non- Pacific peoples and between Asian peoples and non-asian peoples both remained the same at 20 percent and 10 percent respectively. Table 15: Ethnic pay gaps, 2004 to Labour Force (2009) 16 Māori (%) Pacific peoples (%) Asian peoples (%) Like the gender pay gap, ethnic pay gaps can be partially attributed to the occupational mix of a particular group. 73 percent of Māori (59 percent for non-māori) work in the four lower paid occupation groups (social health and education workers, inspectors and regulatory officers, contact centre workers and clerical and administrative workers). The proportion of Asian public servants in these lower paid occupation groups is 63 percent and the proportion of Pacific people is even higher at 83 percent. 16 Source: NZ Income Survey, Statistics NZ. Figures are based on the median wage and salary earnings of full-time employees. 17

18 Section 5: Leave Annual leave and department day entitlements The proportion of full-time permanent Public Service employees receiving 25 days or more annual leave as at 30 e 2009 was 46.1 percent (43.1 percent in 2008). This is the third year that HRC has collected information on department day entitlements. As at 30 e 2009, 60 percent of employees did not receive any departmental day entitlements (57 percent in 2008), while 36 percent of employees received three or more days entitlement (37 percent in 2008). When annual leave and department day entitlements are added together, 60 percent (53 percent in 2008) of permanent full time Public Service staff were entitled to 25 days or more leave per year. Table 16 shows leave entitlement statistics since Table 16: Annual leave entitlements 17, 2004 to 2009 Annual leave entitlement Total leave entitlement Less than 20 days (%) days (%) Over 20 and less than 25 days (%) days (%) Over 25 days (%) Sick leave taken In the year to 30 e 2009, full time permanent employees took an average of 7.5 days of sick and domestic leave. This is the highest average number of days recorded since the data was first collected (see Table 17). Of the 35 Public Service departments, 20 showed an increase in the amount of sick and domestic leave taken this year. Table 17: Sick and domestic leave taken, 2004 to Average sick and domestic leave taken (days) Parental leave As at 30 e 2009, there were 668 employees on parental leave, 659 of whom were female and nine male (2008 figures were 673 total, 657 females and 16 males). During the year to 30 e 2009, 740 employees completed a period of parental leave and 84 of these employees were men. The average length of parental leave for women was 201 calendar days (down from 219 in 2008) compared with 54 calendar days (up from 50 in 2008) for men. A high proportion of employees who had recently returned from parental leave worked less than full-time as at 30 e Of the 656 women who returned from parental leave during the year, 46 percent (up from 41 percent in 2008) worked less than full-time, compared to 18 percent of all women in the Public Service Part-time and fixed term employees are excluded because their leave entitlements can be affected by the number of days worked. Total leave entitlement has two components: annual leave and department days. Department days traditionally cover the working days between Christmas and New Year. 18

19 Section 6: Employment in the public sector Public sector employment While the HRC survey covers the Public Service workforce, the Statistics New Zealand Quarterly Employment Survey (QES) provides data on the numbers employed in the wider public sector (i.e. central and local government). The estimated number of employees in the public sector is shown in Table 18. Table 18: Estimated filled jobs (headcount) in the public sector 19 e 2009 Percentage of the employed labour force (%) Public Service 47, State Services 226, State sector 295, Public sector 339, Wages and salaries in the public sector As already noted the State Services Commission purchases a customised report from the Labour Cost Index (LCI) to monitor wages and salaries in the components of the public sector. This special cut of information shows wage and salary movements in Public Service departments, the health sector, the education sector, a residual group called other central government services, and local government. Wage and salary movements for these groups are shown in Table 19. Table 19: Quarterly, six monthly and annual movements in wages and salary Sector Quarterly Change to e 2009 (%) Six Month Change to e 2009 (%) Annual Change to e 2009 (%) All sectors Private sector Public sector Local Government Central Government Public Service Health Education Other Central Government Source: Quarterly Employment Survey and Household Labour Force Survey, Statistics NZ and HRC. Information from the State Services Commission s customised LCI. Information from the State Services Commission s customised LCI. 19

20 The relative wage and salary movements since the e 2001 base quarter in the Public Service, health services, education services, and the private sector are shown in Figure 9. The Public Service salary movement has remained at 0.2 percent in the first two quarters of 2009, and has been lower than the private sector movements for these two quarters. Figure 9: Salary movements in the Public Service, Health and Education 35% Labour Cost Index - Wages & Salaries Base e % Public Service Health Percentage Change 25% 20% 15% 10% Education Private Sector 5% 0% Quarter Skill supply and demand In previous years, a survey of skill shortages has been run alongside the HRC survey. The qualitative nature of the skill shortage survey provided rich information about the types of roles that departments had trouble filling, however, the survey did not allow the extent of skill shortages to be monitored on a consistent basis. This survey has been discontinued. Instead, the HRC team is using information from the New Zealand Institute of Economic Research (NZIER) and is working with the Department of Labour to monitor skill shortages. The NZIER, in their July 2009 report on the Quarterly Survey of Business Opinion, said that: finding skilled and unskilled labour remains historically easy. A net 42 percent of firms reported that it had become easier to find skilled labour and a net 67 percent that it had become easier to find unskilled labour. These figures are both their highest for more than 30 years. The trend shown in Figure 10 is consistent with the HRC information in the recruitment and retention section of this report and highlights how labour market conditions have changed over the 12 months to e

21 Figure 10: Economy wide: ease of finding labour Net percent, past 3 months Skilled labour Unskilled labour Date Source: NZIER Quarterly Survey of Business Opinion The Department of Labour is currently investigating options for reporting on recruitment difficulties and skill shortages using information derived from online recruitment sites like seek and trademe. In the future this work should provide new information on the supply and demand of labour. 21

22 Appendix 1: Full-time equivalent employees by department, Department e 2004 e 2005 e 2006 e 2007 e 2008 ember 2008 e 2009 Agriculture & Forestry 22 1,355 1,480 1,556 1,592 1,215 1,314 1,295 Archives Building & Housing Conservation 1,838 1,891 1,954 1,996 2,005 2,390 2,062 Corrections 4,620 5,113 5,600 6,332 6,803 7,117 7,114 Crown Law Office Culture and Heritage Customs 1,039 1,199 1,177 1,198 1,182 1,203 1,166 Defence Economic Development Education 2,297 2,449 2,442 2,554 2,552 2,515 2,530 Education Review Office Environment Fisheries Foreign Affairs & Trade Government Communications Security Bureau Health 1,085 1,061 1,157 1,278 1,432 1,423 1,442 Inland Revenue 4,580 4,760 5,224 5,595 5,880 6,140 6,025 Internal Affairs 1,063 1,098 1,223 1,268 1,299 1,419 1,424 Justice 2,348 2,574 2,733 2,852 3,046 3,040 3,113 Labour 1,322 1,371 1,546 1,608 1,808 1,938 1,887 Land Information New Zealand Māori Development National Library NZ Food Safety Authority Pacific Island Affairs Prime Minister & Cabinet Research, Science & Technology Serious Fraud Office Social Development 25 8,366 9,075 9,130 9,323 9,237 9,304 9,178 State Services Commission Statistics New Zealand Transport Treasury Women's Affairs Total 27 35,645 38,032 40,113 42,047 43,569 45,297 44, Figures prior to 2008 include the NZ Food Safety Authority. The Department of Building and Housing was established on 1 November 2004 incorporating the Ministry of Housing, building policy functions from MED, the Building Industry Authority (30 November 2004), the Weathertight Homes Resolution Service from DIA (1 July 2005) and the Electrical Workers Registration Board from MED (1 tember 2006). Figures prior to the 2005 survey relate to the Ministry of Housing. The New Zealand Food Safety Authority was established on 1 July 2007 and was previously part of the Ministry of Agriculture and Forestry. The Ministry of Social Development also includes historical figures for Child, Youth and Family Services prior to FTE family support workers in Child, Youth, and Family, who are employed on Permanent Variable Hours (PVH) contracts are not included in the 2009 HRC data. Survey interviewers are included in the e 2009 figures (67.5 FTE, 135 headcount). These employees had previously been excluded. Totals include chief executives, who are not part of the departmental figures. 22

23 Appendix 2: Percentage of Women 28, Māori 29, Women in senior management, fixed term and collective agreements by department, e 2009 Department Women (%) Māori (%) Women in senior management 30 (%) Fixed Term (%) Collective Agreements 31 Agriculture & Forestry Archives Building & Housing Conservation Corrections Crown Law Office Culture and Heritage Customs Defence Economic Development Education Education Review Office Environment Fisheries Foreign Affairs & Trade Government Communications Security Bureau Health Inland Revenue Internal Affairs Justice Labour Land Information New Zealand Māori Development National Library NZ Food Safety Authority Pacific Island Affairs Prime Minister & Cabinet Research, Science & Technology Serious Fraud Office Social Development State Services Commission Statistics New Zealand Transport Treasury Women's Affairs Public Service Total (%) Percentages are calculated based on public servants with known gender (99.96%). Percentages are calculated based on public servants with known ethnicity (90.6%). Senior management refers to tier 2 and 3 managers. Includes expired collective agreements. 23

24 Appendix 3: Occupations in the HRC Customised Occupation Groups HRC Customised Reporting Group Description Common Occupations Managers 32 All managers in the Public Service. Chief Executive Office Manager Policy and Planning Manager Corporate Services Manager Finance Manager ICT Manager Policy Analysts The code Policy Analyst is also used for employees in advisory roles. Policy Analyst Advisor Information Professionals Social, Health and Education Workers ICT Professionals and Technicians Legal, Human Resources and Finance Professionals Other Professionals not elsewhere included 33 Inspectors and Regulatory Officers Contact Centre Workers Clerical and Administrative Workers Professionals who analyse and manage information and data. Also included are professionals who provide advice on business and organisational methods. Professionals who work in the Social, Health and Education sectors. Covers all ICT staff at the Professional and Technical Level Professionals who provide services in legal, financial accounting and human resource matters. All other Professionals not covered elsewhere. Staff who administer and enforce government and corporate regulations and standards. Contact and Call Centre workers, Inquiry Clerks, and their immediate supervisors. General Administrative and Office Support staff at the clerical level. Management Consultant Liaison Officer Statistician Intelligence Officer Librarian Welfare and Social Worker Teacher Aide Residential Care Officer Education Adviser Careers Counsellor Systems Analyst Business Analyst Programmer Customer Support Officer Systems Administrator Solicitor Training and Development Professional Accountant Auditor Human Resource Adviser Park Ranger Public Relations Professional Conservation Officer Environmental Consultant Veterinarian Prison Officer Parole or Probation Officer Customs Officer Taxation Inspector Court Registry Officer Quarantine Officer Call or Contact Centre Operator Inquiry Clerk Call or Contact Centre Team Leader General Clerk Personal Assistant Program or Project Administrator Accounts Clerk Clerk of Court Receptionist (General) Filing or Registry Clerk Other Occupations All occupations not classified elsewhere All occupations not classified elsewhere Unknown Unknown or unclassifiable occupations Unknown occupations (999999) This group includes communications managers. This group includes communications staff in non-management roles. 24

25 Appendix 4: Definitions Core Government Administration Core government administration refers to: All Public Service departments (excluding the Community Probation & Psychological Service and Prison Service sections of the Department of Corrections, and the Child, Youth & Family and Work & Income sections of the Ministry of Social Development); Five selected Crown entities: Housing New Zealand Corporation; New Zealand Qualifications Authority; New Zealand Transport Agency; New Zealand Trade & Enterprise; and Tertiary Education Commission. Core government administration excludes: the Community Probation & Psychological Service and Prison Service sections of the Department of Corrections; the Child, Youth & Family and Work & Income sections of the Ministry of Social Development; Crown entities (apart from the five noted above); non Public Service departments (New Zealand Defence Force, New Zealand Police, Parliamentary Service, New Zealand Security Intelligence Service, Office of the Clerk, Parliamentary Counsel Office). Public Service Public Service departments are defined in section 27 of the State Sector Act 1988 as comprising the departments specified in Schedule 1 of the Act. Currently, there are 35 Public Service departments. Full Time Equivalent (FTE) Each employee is assigned a FTE value between 0 and 1 depending on the proportion of fulltime hours (however defined by each department) worked. For example, an employee working full-time equals 1 FTE while an employee working 60 percent of full time hours equals 0.6 of an FTE. The FTE values of all employees are added up to give the total number of FTEs in an organisation. Turnover Turnover rates for the Public Service are derived from the exits from departments. As a result turnover includes movements between departments and so the actual level of loss to the Public Service is below the figures reported in this report. Three turnover measures are used: Core unplanned turnover primarily due to resignations of open-term employees, but also includes retirements, dismissals, and death. Planned turnover includes cessations of staff on fixed-term employment agreements and cessations due to restructuring. Gross turnover includes both core unplanned and planned turnover. 25

26 Gender Pay Gap The gender pay gap is defined as the difference between the average salary for women and the average salary for men, and is expressed as percentage of the average salary for men. Ethnic Pay Gap Ethnic pay gaps are defined as the difference between the average salary for an ethnic group and the average salary of those not in that ethnic group, and are expressed as a percentage of the average salary of those not in the ethnic group. 26

27 Appendix 5: Establishment Numbers for Public Service Departments and Selected Crown Entities at 30 e 2009 and 31 ember 2008 Organisation FTE Staff (30/6/09) Vacancies (30/6/09) Positions Establishment Change in (30/6/09) 34 (31/12/08) 35 Positions Core Government Administration - Public Service Departments Agriculture & Forestry Archives Building & Housing Chief Executives Conservation Corrections (excl. Prisons & Probation Services) Crown Law Office Culture & Heritage Customs Defence Economic Development Education Education Review Office Environment Fisheries Foreign Affairs & Trade Government Communications Security Bureau* Health Inland Revenue Department Internal Affairs Justice Labour Land Information New Zealand Māori Development National Library New Zealand Food Safety Authority Pacific Island Affairs Prime Minister & Cabinet Research, Science & Technology Serious Fraud Office Social Development (excluding CYF, W&I) State Services Commission Statistics New Zealand Transport Treasury Women s Affairs Public Service Total (within the cap) Core Government Administration - Selected Crown Entities Housing NZ Corporation (HNZC) NZ Qualifications Authority (NZQA) NZ Trade and Enterprise (NZTE) NZ Transport Agency (NZTA) Tertiary Education Commission (TEC) Crown Entity Total Core Government Administration Total