Human Resource Capability (HRC) Survey of Public Service Departments

Human Resource Capability (HRC) Survey of Public Service Departments As at 3 21

Published by the State Services Commission PO Box 329, Wellington, New Zealand November 21 ISBN: 978--478-36121-6 (Online) ISBN: 978--478-36122-3 (Print) This work is Crown copyright and licensed under the Creative Commons Attribution 3. 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 http://creativecommons.org/licenses/by/3./nz/. 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 1981 (www.legislation.govt.nz/act/public/1981/47/latest/whole.html#dlm52216). Attribution to the Crown should be in written form and not by reproduction of any such emblem, logo or Coat of Arms. 2

Contents Executive Summary... 4 Background... 5 Section 1 Staff Numbers... 6 Staff numbers in the Public Service... 6 Changes in staff numbers by department... 7 Staff numbers by occupation... 8 Section 2 Pay and Benefits... 9 Annual salary movement... 9 Private sector comparison... 9 Average annual salary movement by occupation group... 1 Estimate base salary cost by occupation group... 1 Performance pay... 11 Superannuation... 11 Section 3 Recruitment, Retention and Redundancies... 12 Recruitment... 12 New recruits by occupation group... 12 Fixed term contracts... 13 Turnover... 13 Turnover by department... 14 Turnover by occupation group... 15 Tenure (length of service)... 15 Redundancies... 16 Section 4 Equality and Diversity... 19 Ethnicity... 19 Women in the Public Service... 19 Diversity in senior management... 19 Gender and ethnicity pay gaps... 2 Section 5 Leave... 23 Annual leave entitlements... 23 Parental leave... 23 Sick leave taken... 23 Appendix 1 Full-time equivalent employees by department, 25 to 21... 24 Appendix 2 Percentage of Women, Maori, Women in senior management, fixed term and collective agreements by department, 21... 25 Appendix 3 Occupations in the HRC Customised Occupation Groups... 26 Appendix 4 Definitions... 27 Core Government Administration... 27 Public Service... 27 Full Time Equivalent (FTE)... 27 Turnover... 27 Gender Pay Gap... 28 Ethnic Pay Gap... 28 3

Executive Summary Staff numbers in the Public Service are down on an annual basis for the first time since 1999, and the increase in average salary has dropped back significantly to 1.5 percent (down from the historical highs of 5. to 6. percent during the previous four years). Public Service wage and salary increases during the 12 months to 21 were lower than the private sector. Departments are starting to make hard decisions that affect the size and composition of their workforce; 78 public servants were made redundant this year (up from 31 in 29). The number of employees resigning has fallen significantly, with a corresponding increase in the average length of service; Public servants are staying in their jobs for longer and 43 percent of new hires are on fixed term employment agreements. These factors, coupled with external changes in the labour market, impact on many of the survey results which are summarised below: In the year to 3 21, the number of Full Time Equivalent (FTE) employees in the Public Service decreased by 118 to 44,554 (down.3%). This was the first to decrease since 1999. In the year to 3 21, 78 employees in the Public Service were made redundant; an increase of 479 from the previous year. The 78 redundancies were offset by an increase of 736 FTEs in uncapped parts of Corrections (581) and the Ministry of Social Development (155). The average redundancy payment was $48,891. The average length of service of employees made redundant was 13.6 years (up from 1. years in 29). The average base salary increased by 1.5 percent to $63,655 (the average base salary increased by 5.3% in 29). The median base salary for public servants as at 3 21 was $54,981 ($54,529 in 29). Wages and salaries in the Public Service are increasing at a slower rate than the private sector. Statistics NZ s Labour Cost Index (LCI) recorded an increase of.5 percent in Public Services wages and salaries during the year to the 21. Over the same period, private sector wages and salaries increased by 1.5 percent. Performance pay is more targeted than in previous years, with fewer public servants receiving payments but these payments are of higher average value. Twenty six departments made performance payments, but only 4 percent of public servants received them (down from 11% in 29). Core unplanned turnover (resignations, retirements, dismissals, and deaths of open term employees) for the Public Service as a whole dropped by 1.5 percentage points over the year, to a historical low of 9.2 percent (1.7% in 29). The turnover rate dropped to around 8 percent in the first six months of the 29/1 financial year, and then increased to around 1 percent in the second six months. Turnover dropped in 25 of the 35 departments, with decreases ranging from.5 to 11.6 percentage points. In the year to 3 21, 7263 employees were recruited into the Public Service. This is the lowest number of new recruits recorded since the survey began and represents a drop of 19 percent from the previous year. The proportion of new employees on fixed term contracts rose to 43 percent in 21 (up from 38% in 29). 4

Background Information in this report comes primarily from the Human Resource Capability (HRC) survey, which has collected data on staff 1 in Public Service departments annually since 2. This report complements the recently released capping update which focused on the total number of positions (FTE staff numbers plus vacancy numbers) in core government administration, and the number of communication staff in each department. For the full capping report, see www.ssc.govt.nz/capping-data-to-3june1. While organisations covered in the capping report differ from the Public Service departments covered in this report there is a significant overlap between the employees covered by the cap on core government administration and employees in the Public Service. Figure 1 highlights the overlaps and differences between these two groups. Figure 1 Core Government Administration and the Public Service Capping Report Public Service Corrections Community Probation and Psychological Services Prison Services Social Development(MSD) Child Youth & Family Work & Income 33 Public Service Departments plus: Other parts of Corrections Other parts of MSD 5 Crown Entities TEC NZQA HNZC NZTA NZTE Core Government Administration HRC Report This report provides further information about characteristics and trends within the Public Service workforce. Five main topic areas are covered: staff numbers pay and benefits recruitment and retention equality and diversity leave Data from other sources, including job advertisements placed on jobs.govt.nz and Statistics NZ labour market information, has been included to provide context. The focus of this report is on Public Service wide trends, rather than individual department level information. 1 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

Section 1: Staff Numbers Staff numbers in the Public Service In the year to 3 21, the number of FTE employees in the Public Service decreased by 118 to 44,554 (-.3%). The annual decrease can be broken down into an increase of 172 FTEs (.4%) between 3 29 and 31 December 29 and a decrease of 29 FTEs (-.6%) between 1 January 21 and 3 21. This seasonal pattern to Public Service employment can partly be attributed to the recruitment of temporary summer employees at the Department of Conservation. The six month change, annual change, and the longer term trend in FTEs and headcounts are shown in Table 1 and Figure 2. Table 1 Public Service Employment (FTEs and Headcount), 25 to 21 25 26 27 28 December 28 29 December 29 21 Total FTEs 38,32 4,113 42,47 43,569 45,297 44,672 44,844 44,554 Total headcount 4,325 42,268 44,335 45,934 47,529 47,52. 46,822 Change in FTEs from the previous period (%) 6.7 5.5 4.8 3.6 4. -1.4 2.4 3 -.6 4 Figure 2 Public Service Staffing, 25 to 21 5, Number 45, 4, 38,32 4,113 42,47 43,569 45,297 38,859 44,672 37,457 44,844 37,379 44,554 36,771 36,836 36,369 35, Public Service FTEs Capping introduced Positions (FTEs and Vacancies) in core government administration under the cap 3, Dec 4 Jun 5 Dec 5 Jun 6 Dec 6 Jun 7 Dec 7 Jun 8 Dec 8 Jun 9 Dec 9 Jun 1 Dec 1 Jun 11 Dec 11 Jun 12 Dec 12 Date 2 This percentage is based on the change over the six months to 29. The annual figure to 3 29 is 2.5%. 3 This percentage is based on the change over the six months to Dec 29. The annual figure to 31 Dec 29 is -1.%. 4 This percentage is based on the change over the six months to 21. The annual figure to 3 21 is -.3%. 6

Changes in staff numbers by department Changes to FTE staff numbers within each department over the year to 21 are shown in Figure 3. Eleven departments had an increase over the full year, twenty one departments had a decrease, and three departments recorded no change in FTE staff numbers. Changes to FTE staff numbers within each department over the past 5 years are shown in. Figure 3 Changes in Department FTE Staff Numbers, 29 to 21 8 6 1+581 4 Number of FTEs 2-2 -4-151 -86-8 -5-42 -36-35 -31-28 -2-14 -1-1 -9-7 -7-5 -4-3 -2 1 1 2 3 8 11 8 82 92 155 Changes outside cap Changes within cap -6-513 -8 IR MoH MoE TPK SSC NZFSA MAF MFAT LINZ DBH Fisheries DoC ERO Customs Archives GCSB Nat. Lib. MoT SFO MPIA Crown Law MoD MfE MED MWA MoRST Treasury MCH DPMC DoL DIA Statistics MoJ MSD Corrections Department The department with the largest annual increase in staffing was the Department of Corrections which increased by 591 FTEs. The Department of Corrections is one of the two departments with the majority of staff outside the cap on core government administration. The majority of this increase (581) was outside the cap. Besides the increase at the Department of Corrections, four other departments recorded annual increases of over 5 FTEs: Ministry of Social Development (155), Ministry of Justice (92), Statistics New Zealand (82) and Department of Internal Affairs (8). The increase in FTEs at the Ministry of Social Development occurred in Child, Youth and Family and Work and Income, outside the cap. The increases in the Ministry of Justice and the Department of Internal Affairs were largely due to new functions within these departments. The build up of FTE numbers at Statistics New Zealand is in preparation for the 211 population census. Of the twenty one departments with decreases over the 12 months to 3 21, the largest drops occurred in the Inland Revenue Department (-513) and the Ministry of Health (-151). During the year, IRD made a number of changes to become a more streamlined organisation, including a process in which 27 employees accepted voluntary redundancy. The Ministry of Health went through an organisational change which resulted to termination of employees on the grounds of redundancy and which also saw some of its functions outsourced. 7

Staff numbers by occupation This is the fourth 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. The FTE staff numbers in each occupation group over the past three years are shown in Table 2. Table 2 FTE staff numbers by occupation group HRC customised occupation groups 3 28 31 December 3 28 5 29 31 December 29 3 21 Managers 6 5,135 5,48 5,81 5,127 5,15 Policy Analysts 3,43 2,847 2,836 2,792 2,626 Information Professionals 2,35 3,2 3,113 3,184 3,411 Social, Health and Education Workers 6,988 7,696 7,736 7,797 7,977 ICT Professionals and Technicians 1,843 2,182 2,119 2,112 2,9 Legal, HR and Finance Professionals 2,45 2,88 2,17 2,167 2,129 Other Professionals not elsewhere included 7 2,141 2,573 2,8 2,179 1,922 Inspectors and Regulatory Officers 8,698 9,586 9,245 9,25 9,454 Contact Centre Workers 8 1,951 4,383 4,527 4,579 4,49 Clerical and Administrative Workers 8,19 5,45 5,472 5,35 5,179 Over the twelve months to 21, the largest percentage drop occurred in Policy Analysts (down by 7%). The Ministry of Justice had the largest fall in Policy Analysts (down by 48 FTEs), followed by the State Services Commission (down by 46 FTEs). On the other hand, FTE staff numbers in Information Professionals and Social, Health and Education Workers increased by 1% and 3% respectively. The Ministry of Justice had the largest increase in Information Professionals (up by 86 FTEs) followed by the State Services Commission (up by 64 FTEs). The largest increase in Social, Health and Education Workers came from the Ministry of Social Development (up by 275 FTEs). While these figures have been collected on the same basis each year, a number of departments have re-examined their occupation codes to ensure that the most appropriate codes are used. Consequently the shift in numbers across occupation groups may be due to recoding or actual increases and reductions. 5 6 7 8 The December 28 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 3 28 and 31 December 28 is due to the reclassification of IRD Clerical and Administrative Workers to Contact Centre Workers. 8

Section 2: Pay and Benefits Annual salary movement The data collected for the HRC survey provides a snapshot of the base salaries in the Public Service as at 3 each year. As at 3 21 the median base salary for public servants was $54,981, up from $54,529 in 29. The average base salary increased by 1.5% to $63,655, up from $62,713 in 29. This is the smallest change in the past 1 years. The trend since 25 is shown in Table 3. Table 3 Average and median salary (25 to 21) 25 26 27 28 29 21 Median ($) 43,7 45,9 48,343 51, 54,529 54,981 Average Salary ($) 5,884 53,948 56,619 59,532 62,713 63,655 Change in average salary (%) 4.% 6.% 5.% 5.1% 5.3% 1.5% Private sector comparison Wages and salaries in the Public Service are increasing at a slower rate than the private sector. 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 in wages and salaries of.5 percent for the Public Service in the year to 3 21. This increase was lower than the private sector increase of 1.5 percent for the same period. The trend in Public Service annual wage movements and private sector annual wage movements since 21 is shown in Figure 4. Figure 4 Public Service and Private Sector wage movements, 21 to 21 7% 6% 5% Difference: Public Service and Private Sector Annual Movement -Private Sector Annual Movement - Public Service HRC Survey Period (29/1) 4% Percentage 3% 2% 1% % -1% -2% Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun 21 22 23 24 25 26 27 28 29 21 9

Average annual salary movement by occupation group Average annual salary movements for each occupation group over the last two years are shown in Table 4. In the 12 months to 3 21 Social, Health and Education Workers had the largest annual positive movement in average salary at 2.8%. Table 4 Movements in average salary by occupation group HRC customised occupation groups 29 21 Managers 6.%.8% Policy Analysts 6.1% 1.2% Information Professionals 7.4% 2.5% Social, Health and Education Workers 5.3% 2.8% ICT Professionals and Technicians 6.1% 1.6% Legal, HR and Finance Professionals 8.6% 2.7% Other Professionals not elsewhere included 7.% 1.7% Inspectors and Regulatory Officers 6.8% 1.% Contact Centre Workers 7.7%.6% Clerical and Administrative Workers 8.6%.5% Estimate base salary cost by occupation group Figure 5 shows the base salary cost for each occupation group as at 3 for the years 28, 29 and 21. Expenditure on base salary accounts for, on average, 83% of total personnel expenses. Other components of personnel expenditure include superannuation, ACC levies, and performance payments. Figure 5 Estimated base salary cost by occupation group 9 $6m Total expenditure $5m $4m $3m $2m $1m $m $527m $553m $56m $265m $235m $22m $15m $213m $239m $355m $414m $438m $131m $16m $154m $168m $165m $166m $123m $123m $12m $423m $481m $497m $78m $195m $191m 28 29 21 Managers Policy Analysts Information Professionals $362m Social, Health and Education Workers ICT Professionals and Technicians $263m $25m Legal, HR and Finance Professionals Other Professionals not elsewhere included Inspectors and Regulatory Officers Contact Centre Workers Clerical and Administrative Workers Occupational group 9 Between 28 and 29 IRD reclassified several Clerical and Administrative Workers to Contact Centre Workers. 1

Performance pay Performance pay is more targeted than in previous years, with fewer public servants receiving payments but these payments are of higher average value. Twenty six departments made performance payments, but only 4% of public servants received them (down from 11% in 29). The average amount received was $3,617 (up from $2,412 in 29). The trend since 25 is shown in Table 5. Table 5 Lump sum performance payment, 25 to 21 1 25 26 27 28 29 21 Number of staff receiving performance payment Percentage of staff receiving performance payments (%) Average value of performance payment ($) 8377 743 7978 6285 5354 1897 21% 18% 18% 14% 11% 4% 2,592 2,521 2,251 2,57 2,412 3,617 Superannuation As at 3 21, 67% of permanent public servants were members of at least one employer subsidised superannuation scheme. The proportion of employees contributing to superannuation has rapidly increased since the introduction of Kiwi Saver. Figure 6 shows the proportion of public servants in each scheme (or multiple schemes). Figure 6 Subsidised superannuation scheme membership, 3 29 and 3 21 3 29 3 21 4% 1% 3% 4% 1% 2% Non Members 18% 37% 26% 33% SSRSS KiwiSaver GSF Multiple Schemes Other Schemes 37% 34% 1 Chief Executives are excluded from all figures. Figures reported last year have been revised. 11

Section 3: Recruitment, Retention and Redundancies Recruitment In the year to 3 21, 7,263 employees were recruited by Public Service departments. This is the lowest number of new recruits recorded since the survey began in 2 and represents a drop of 19% from the previous year. Table 6 shows the number of new employees over the 5 years to 21. Table 6 Number of new employees, 25 to 21 25 26 27 28 29 21 Number of new employees 1,622 11,465 1,615 11,62 8,931 7,263 Statistics from the Government Jobs Online website 11 indicate that recruitment activity picked up in the second half of the 29/21 financial year. This increased activity is probably due to existing vacancies being backfilled, and not new jobs being created. Figure 7 shows the number of Public Service jobs advertised as at the first of each month. Figure 7 Public Service jobs listed on jobs.govt.nz as at the 1 st of each month 6 516 5 447 441 476 473 Total number of jobs listed 4 3 2 224 338 368 368 37 368 378 1 Jul 29 Aug 29 Sep 29 Oct 29 Nov 29 Dec 29 Jan 21 Feb 21 Mar 21 Apr 21 May 21 Jun 21 Month New recruits by occupation group Social, Health and Education Workers (22%) and Clerical and Administrative Workers (19%) had the highest proportion of new recruits. However, these two occupations groups also have comparatively high turnover rates which meant most of the recruitment was to replace staff that left. 11 http://www.job.govt.nz 12

Inspectors and Regulatory Officers had the third highest proportion of new recruits (18%). This occupation group has very low turnover (7%) and is by far the largest occupation group in the Public Service (9,454). The increase for Inspectors and Regulatory Officers can be attributed to the Department of Corrections. Compared to the previous year, Policy Analysts had the largest reduction in the number of new recruits (down 42%) followed by Legal, HR and Finance Professionals (down 34%). Fixed term contracts Departments are increasingly opting to offer new employees fixed term contracts (temporary) rather than permanent contracts (ongoing). The proportion of new employees on fixed term contracts rose to 43% (from 38% in 29 and 34% in 28). Despite the increase in the proportion of new employees on fixed term contacts, the overall proportion of fixed term roles dropped slightly to 5.8% (from 5.9% in 29). This decrease was due to a drop in the number of new employees and a reduction in the number of fixed term contracts being extended. Table 7 shows the number and proportion of employees on fixed term contracts. Table 7 Fixed term contracts 25 26 27 28 29 21 Open term (FTEs) 35,231 37,34 39,499 4,879 42,54 41,981 Fixed term (FTEs) 2,81 2,773 2,548 2,69 2,618 2,573 Proportion of all employees on fixed term contracts Proportion of new employees on fixed term contracts 7.4% 6.9% 6.1% 6.2% 5.9% 5.8% 39% 36% 34% 34% 38% 43% There is significant variation by occupation group with 65% of Clerical and Administrative workers recruited on fixed term contracts compared with 18% new employees in Inspectors and Regulatory Officers. In the 12 months to 3 21, the average length of a fixed term contract was 12 months (the same as the previous year). Turnover Core unplanned turnover (resignations, retirements, dismissals, and deaths of open term employees, see definitions in ) dropped by 1.5 percentage points over the year to 3 21 to a historical low of 9.2% (down from 11% in 29). Table 8 shows the gross and core unplanned turnover rates for the Public Service from 25 to 21. Table 8 Turnover rates in the Public Service, 25 to 21 25 26 27 28 29 21 Gross turnover rate (%) 21.1 21.5 2. 2.4 17. 15.6 Core unplanned turnover rate (%) 13.5 13.4 13.6 14.6 1.7 9.2 Male core unplanned turnover rate (%) 12.3 12. 12. 12.9 9.9 8.1 Female core unplanned turnover rate (%) 14.4 14.5 14.7 15.8 11.3 1. 13

Figure 8 shows monthly turnover rates which have been annualised (multiplied by 12) so they can be compared with the annual core unplanned turnover rate. After dropping to historical lows of around 8% in the first six months of the 29/1 financial year, turnover increased to around 1% in the second six months of the financial year. The annual figure of 9.2% is the lowest core unplanned turnover rate since the survey began in 2. Figure 8 Core unplanned turnover by month 12.% Core unplanned turnover 1.% 8.% 6.% 4.% Annual core unplanned turnover = 9.2% 9.% 7.5% 7.5% 8.2% 7.2% 8.6% 11.% 9.6% 1.3% 11.1% 1.5% 1.6% 2.%.% Jul 9 Aug 9 Sep 9 Oct 9 Nov 9 Dec 9 Jan 1 Feb 1 Mar 1 Apr 1 May 1 Jun 1 Month The slight increase in turnover since January 21 could be attributed to improved employment prospects and public servants beginning to explore other job opportunities. The labour market reached a turning point in late 29/early 21 as the economic recovery gained momentum. The economy grew by a total of 1.5% over the December 29 and March 21 quarters. This helped employment rise by 1.% in the March 21 quarter. 12 Turnover by department Figure 9 shows a large variation in annual turnover rates for individual departments (25.5% down to 4.3%). The overall decrease in core unplanned turnover was driven by decreases in 25 of the 35 departments; decreases ranged from.5 to 11.6 percentage points. Five departments recorded increases in core unplanned turnover ranging from.1 to 6. percentage points. 12 Labour Market Update 21, Department of Labour 14

Figure 9 Core unplanned turnover by department 3.% Core unplanned turnover 25.% 2.% 15.% 1.% 5.% 25.5% 19.2% 17.% 16.7% 16.% 15.6% 15.3% 14.7% 14.7% 14.1% 14.% 13.5% 12.4% 12.1% 11.9% 11.7% 11.5% 11.4% 11.2% 9.7% 9.5% 9.3% 8.8% 8.4% 8.3% 8.2% 8.1% 7.7% 7.6% 7.5% 7.4% 7.2% 7.1% 6.8% 4.3%.% MoRST SFO SSC MPIA MCH MWA DBH Treasury MoH Archives DPMC MED DIA MoD MoT MoE MoJ Crown Law MfE NZFSA DoL Statistics LINZ MSD Nat. Lib. Corrections MAF IR Fisheries TPK ERO DoC MFaT Customs GCSB Department Turnover by occupation group Table 9 shows core unplanned turnover by occupation group. With the exception of Clerical and Administrative Workers, turnover decreased in all occupation groups over the 12 months to 3 21. The largest decrease in turnover occurred in Contact Centre Workers which dropped by seven percentage points. Table 9 Core unplanned turnover by occupation group HRC customised occupation groups 28 29 21 Managers 1% 7% 6% Policy Analysts 17% 13% 12% Information Professionals 14% 11% 9% Social, Health and Education Workers 15% 11% 1% ICT Professionals and Technicians 17% 1% 8% Legal, HR and Finance Professionals 16% 12% 9% Other Professionals not elsewhere included 12% 9% 8% Inspectors and Regulatory Officers 11% 9% 7% Contact Centre Workers 28% 2% 13% Clerical and Administrative Workers 16% 1% 12% Tenure (length of service) The 21 HRC data shows that average tenure increased to 8.5 years (from 8.2 years in 29). Increases in average length of service of employees are due to the continued low turnover. The trend since 25 is shown in Table 1. This increase may indicate that Public Servants are staying in their jobs, and there are fewer opportunities than in previous years for Public Servants to change roles. 15

Table 1 Tenure in the Public Service, 25 to 21 25 26 27 28 29 21 Tenure (years) 8.3 8. 7.9 8. 8.2 8.5 Redundancies In the year to 3 21, 78 employees in the Public Service were made redundant; an increase of 159% from the previous year. Similarly the proportion of employees leaving the Public Service because of redundancy increased significantly to 14% (up from 5% in 29 and 2% in 28). The average redundancy payment was $48,891. The average length of service of employees made redundant was 13.6 years compared to the previous year of 1. years. This may explain some of the increase in the amount of redundancy payment made. Table 11 shows the number of redundancies, average redundancy payments, and average length of service of those being made redundant for the years 25 to 21. Table 11 Redundancies and average payments, 25 to 21 25 26 27 28 29 21 Number of redundancies 218 163 169 165 31 78 Average Payment ($) 4,621 37,268 45,72 47,482 38,966 48,891 Payment as a percentage of average base salary (%) Average length of service of those made redundant (years) 8 69 81 8 62 77 9.6 11.3 13.8 11.5 1. 13.6 Figure 1 shows the number of redundancies for each department. Over the past year nearly 4% of the redundancies in the Public Service occurred at Inland Revenue. Of the 38 redundancies at IRD, 27 resulted from a voluntary redundancy process run across the department between 1 July 29 and 3 September 29. Selection criteria ensured that reductions to frontline customer facing roles were kept to a minimum, and that necessary skills and experience critical to the department were retained. The additional 38 redundancies at Inland Revenue occurred as a result of business unit specific reviews and structural changes across the year. 16

Figure 1 Redundancies by department 35 38 3 Number of employees 25 2 15 1 5 78 52 38 38 27 26 26 26 23 22 19 18 15 13 8 7 7 6 5 5 5 4 2 1 1 IR MSD Corrections LINZ MAF MoE Fisheries MoH MoJ Nat. Lib. MED MfE DIA DoL NZFSA SSC SFO Treasury DBH MoT Statistics TPK ERO Customs DoC MPIA Archives Crown Law DPMC GCSB MCH MFAT MoD MoRST MWA Department Figure 11 shows that in the six months to 3 21 there were 236 Public Service redundancies, compared with 544 in the first six months. The 262 redundancies in August 29 include 233 redundancies at Inland Revenue. Figure 11 Redundancies by month 3 25 262 2 Number 15 IR Other 1 5 43 4 71 74 54 57 3 14 34 16 85 Jul 9 Aug 9 Sep 9 Oct 9 Nov 9 Dec 9 Jan 1 Feb 1 Mar 1 Apr 1 May 1 Jun 1 Month 17

Twenty six departments made redundancy payments in the year to 21. The average age of those made redundant was 5. Table 12 shows that the occupation groups with the largest number of redundancies were Managers (139), Clerical and Administration Workers (13), Contact Centre Workers (119) and Inspectors and Regulatory Officers (16). Table 12 Redundancies by occupation group, 27 to 21 HRC customised occupation groups 27 28 29 21 Managers 44 49 76 139 Policy Analysts 6 13 17 28 Information Professionals 7 13 31 81 Social, Health and Education Workers 4 2 12 31 ICT Professionals and Technicians 1 4 6 42 Legal, HR and Finance Professionals 1 12 16 29 Other Professionals not elsewhere included 7 18 24 38 Inspectors and Regulatory Officers 1 9 36 16 Contact Centre Workers 25 1 2 119 Clerical and Administrative Workers 52 42 47 13 Other Occupations 1 14 37 Unknown 1 1 2 18

Section 4: Equality and Diversity This HRC report contains a short quantitative overview of Equality & Diversity in the Public Service. A separate Equality and Diversity report has also been produced. The 21 Equality and Diversity report draws on current and historical HRC data, at both a Public Service wide and department level, and brings it together with qualitative information to provide a comprehensive picture of equality and diversity in the Public Service. Ethnicity The ethnic diversity of the Public Service is shown in Table 13. The representation of the Asian ethnic group in the Public Service continued to grow, although at a slightly slower rate than over the previous 5 years. Representation of Maori and Pacific People both increased slightly in 21. Table 13 Representation of ethnic groups 13 in the Public Service, 25 to 21 25 26 27 28 29 21 Maori (%) 17.5 16.7 16.8 16.7 16.2 16.4 Pacific People (%) 7.3 7.4 7.6 7.8 7.4 7.6 Asian (%) 5.4 5.9 6.5 6.9 7.2 7.4 Middle Eastern, Latin American, African (%).4.5.7.9.9 1. European (%) 75.7 74.3 73.1 72.5 71.4 72.6 Other (%) 1.2 3.5 3.5 3.4 4.3 4. Women in the Public Service The proportion of women in the Public Service as at 3 21 remained at 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. The proportion of women in each Public Service department is shown in. On average, women in the public service are younger than men. The average age of women was 42.9 years, whereas the average age of men was 44.9 years. A higher proportion of women (21.8 percent) were aged 25-34 years compared with men (18.3 percent). Diversity in senior management The proportion of women in senior management roles has increased significantly over the past 12 months after being static between 26 and 29. Over the year to 3 21, the proportion of women in senior management increased by 2. percentage points to 39.8 percent (37.8 percent in 29). 13 Ethnicity is recorded and reported based on the Statistics New Zealand Statistical Standard for Ethnicity 25. People recording more than one ethnic group are counted multiple times. Percentages in Table 13 and Table 14 are of those with a known ethnicity. 19

Table 14 shows the proportion of women, Maori, Pacific, and Asian in senior management roles (tier 1, 2, and 3). Figure 14 shows the proportion of women in senior management since 25. Table 14 Diversity in senior management, 25 to 21 25 26 27 28 29 21 Public Service Workforce (21) Women 35.6% 37.7% 37.8% 38.4% 37.8% 39.8% 58.7% Maori 8.3% 8.2% 9.1% 9.% 8% 8.3% 16.4% Pacific people 1.7% 1.7% 1.7% 1.3% 1.5% 1.5% 7.6% Asian 1.5% 1.6% 1.5% 1.4% 1.5% 1.7% 7.4% Figure 12 Women in senior management, 25 to 21 4.% 39.8 % of senior managers are women Percentage 35.6% 3.% 25 26 27 28 29 21 Year As at 3 21, 27 percent of senior managers in the Public Service were aged over 55 years (19 percent in the Public Service) and the average age of senior managers was 5.1 years (43.8 years in Public Service). Gender and ethnicity pay gaps As at 3 21, the average salary for men in the Public Service was $69,544 and $59,522 for women. Over the past 12 months the gender pay gap decreased by one percentage point (from 15.4% to 14.4%) representing the largest reduction in the pay gap over the past 5 years. Over the past year average salary for women increased by 2. percent compared with.8 percent for men. The gender pay gap in the Public Service for the years 25 to 21 is shown in Table 15. 2

Table 15 Gender pay gaps, 25 to 21 25 26 27 28 29 21 Female Salary (average) $47,13 $5,5 $52,55 $55,47 $58,363 $59,522 Male Salary (average) $56,349 $59,644 $62,538 $65,475 $68,983 $69,544 Gender Pay Gap (%) 16.4% 16.1% 16.% 15.4% 15.4% 14.4% Figure 13 Average Salary by gender, 25 to 21 $75, $7, Male ($69,544) $65, $6, $55, $5, 16.4 % 16.1 % 16. % 15.4 % 15.4 % 14.4 % Female ($59,522) $45, $4, $35, 25 26 27 28 29 21 Average Salary Year The gender pay gap within occupation groups is lower than the overall gender pay gap. Pay gaps for occupation groups range from 1. percent for Contact Centre Workers through to 13.6 percent for Managers. The reduction in the overall gender pay gap was driven by reductions in all but one occupation group. The exception was Managers, where the pay gap increased from 12.9 percent to 13.6 percent (see Table 16). Table 16 Gender pay gaps, 25 to 21 HRC customised occupation groups 27 28 29 21 Managers 13.8% 13.9% 12.9% 13.6% Policy Analysts 12.1% 1.2% 1.4% 1.1% Information Professionals 8.4% 8.8% 8.8% 8.5% Social, Health and Education Workers 9.8% 8.1% 7.7% 5.9% ICT Professionals and Technicians 7.7% 7.9% 8.5% 7.6% Legal, HR and Finance Professionals 9.8% 1.8% 9.3% 8.5% Inspectors and Regulatory Officers 6.3% 4.4% 4.2% 4.% Contact Centre Workers 1.8% 1.7% 1.7% 1.% Clerical and Administrative Workers 4.9% 4.1% 11.1% 6.4% Other Occupations 21.7% 19.% 16.1% 11.9% 21

Table 17 shows ethnic pay gaps in the Public Service. The pay gap between Maori and non- Maori remained at 11 percent. The pay gap between Pacific peoples and non-pacific peoples decreased from 2 percent to 19 percent while pay gap between Asian peoples and non-asian peoples increased to 11 percent. Table 17 Ethnic pay gaps, 25 to 21 25 26 27 28 29 21 Maori (%) 13% 12% 11% 12% 11% 11% Pacific peoples (%) 21% 21% 2% 2% 2% 19% Asian peoples (%) 1% 9% 1% 1% 1% 11% Like the gender pay gap, ethnic pay gaps can be partially attributed to the occupation profile of a particular ethnic group. 73 percent of Maori 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 64 percent (63 percent in 29) and the proportion of Pacific peoples is even higher at 82 percent (83 percent in 29). 22

Section 5: Leave Annual leave entitlements As at 3 21, 5 percent of full-time permanent Public Service employees received 25 days or more annual leave (46.1 percent in 29). In addition to the leave shown in Table 18, 31 percent of public servants were entitled to department days which are generally the three working days between Christmas and New Year. The increase in the proportion of employees entitled to over 25 days was offset by a reduction in the number of employees entitled to department days. Table 18 Annual leave entitlements 14, 25 to 21 25 26 27 28 29 21 Less than 2 days (%) 23% 12% % % % % 2 days (%) 39% 48% 35% 32% 28% 24% Over 2 less than 25 (%) 18% 12% 23% 25% 25% 25% 25 days (%) 15% 24% 29% 32% 34% 31% Over 25 days (%) 5% 4% 13% 11% 12% 19% Proportion of employees receiving department days.. 4% 42% 39% 31% Parental leave As at 3 21, there were 682 employees on parental leave, 659 of whom were female and 23 male (29 figures were 668 total, 659 female and 9 males). During the year to 3 21, 729 employees returned to work after completing a period of parental leave and 61 of these employees were men. The average length of parental leave for women was 223 calendar days (up from 21 in 29) compared with 61 calendar days (up from 54 in 29) for men. As 3 21, 41 percent of employees who recently returned from parental leave worked less than full time. Sick leave taken In the year to 3 21, full time permanent employees took an average of 7.7 days of sick and domestic leave. This is a small increase from the previous year of 7.6 days (see Table 19). Table 19 Sick and domestic leave taken, 25 to 21 25 26 27 28 29 21 Average sick and domestic leave taken (days) 6.5 6.6 6.5 7.3 7.6 7.7 14 Part-time and fixed term employees are excluded because their leave entitlements can be affected by the number of days worked. 23

Appendix 1: Full-time equivalent employees by department, 25 to 21 Department 25 26 27 28 29 21 Agriculture & Forestry 1 1,48 1,556 1,592 1,215 1,295 1,259 Archives 1 1 19 119 137 128 Building & Housing 2 215 36 332 34 348 32 Conservation 1,891 1,954 1,996 2,5 2,62 2,48 Corrections 5,113 5,6 6,332 6,83 7,114 7,74 Crown Law Office 152 153 173 175 182 181 Culture and Heritage 3 72 86 89 1 1 13 Customs 1,199 1,177 1,198 1,182 1,166 1,156 Defence 54 58 59 56 6 59 Economic Development 697 716 686 731 746 746 Education 2,449 2,442 2,554 2,552 2,53 2,444 Education Review Office 227 246 233 213 219 29 Environment 222 249 266 284 294 294 Fisheries 372 49 437 435 447 428 Foreign Affairs & Trade 664 699 723 79 9 864 Government Communications Security Bureau 295 293 292 293 31 33 Health 1,61 1,157 1,278 1,432 1,442 1,291 Inland Revenue 4,76 5,224 5,595 5,88 6,25 5,512 Internal Affairs 1,98 1,223 1,268 1,299 1,424 1,55 Justice 2,574 2,733 2,852 3,46 3,113 3,25 Labour 1,371 1,546 1,68 1,88 1,887 1,898 Land Information New Zealand 546 563 54 515 516 484 Māori Development 342 366 391 361 43 323 National Library 353 367 352 358 356 349 NZ Food Safety Authority 4 - - - 488 5 458 Pacific Island Affairs 52 49 49 43 41 38 Prime Minister & Cabinet 114 16 19 16 11 19 Research, Science & Technology 69 68 71 7 73 74 Serious Fraud Office 29 29 29 34 3 25 Social Development 5 9,75 9,13 9,323 9,237 9,178 9,333 State Services Commission 153 18 215 233 211 161 Statistics New Zealand 6 79 8 786 787 875 957 Transport 128 146 15 174 171 166 Treasury 337 324 33 338 355 357 Women's Affairs 26 29 34 34 3 31 Total 7 38,32 4,113 42,47 43,569 44,672 44,554 1 2 Figures prior to 28 include the NZ Food Safety Authority. The Department of Building and Housing was established on 1 November 24 incorporating the Ministry of Housing, building policy functions from MED, the Building Industry Authority (3 November 24), the Weathertight Homes Resolution Service from DIA (1 July 25) and the Electrical Workers Registration Board from MED (1 September 26). 3 Increases in FTEs at Culture and Heritage between 3 29 and 3 21 were primarily due to new fixed term positions created to complete specific projects, e.g. Vietnam War oral history and commencement of recruitment for the Digital Switch Over project. 4 The New Zealand Food Safety Authority (NZFSA) was established on 1 July 27 and was previously part of the Ministry of Agriculture and Forestry (MAF). At 1 July 21 NZFSA was merged back into MAF. 5 The Ministry of Social Development also includes historical figures for Child, Youth and Family Services prior to 27. 49 FTE family support workers in Child, Youth, and Family, who are employed on Permanent Variable Hours (PVH) contracts are not included in the 29 HRC data. 6 Survey interviewers are included from 29 figures. These employees had previously been excluded. 7 Totals include chief executives, who are not part of the departmental figures.

Appendix 2: Percentage of Women 1, Maori 2, Women in senior management, fixed term and collective agreements by department, 21 Department Women (%) Māori (%) Women in senior management 3 (%) Fixed Term (%) Collective Agreements 4 (%) Agriculture & Forestry 47 6 2 5 5 Archives 6 9 54 14 56 Building & Housing 55 14 31 1 1 Conservation 38 13 24 12 81 Corrections 42 23 57 4 61 Crown Law Office 69 8 5 6 41 Culture and Heritage 58 12 46 34 37 Customs 39 1 15 1 68 Defence 33 7 15 3 Economic Development 54 6 64 6 15 Education 8 13 55 27 45 Education Review Office 72 2 56 2 74 Environment 62 3 33 1 43 Fisheries 33 14 36 6 42 Foreign Affairs & Trade 53 1 29 7 64 Government Communications Security Bureau 3 9 17 3 74 Health 62 1 36 7 24 Inland Revenue 65 11 3 2 69 Internal Affairs 55 12 45 16 27 Justice 65 18 41 6 51 Labour 59 8 45 6 55 Land Information New Zealand 46 7 34 4 Māori Development 59 69 48 12 35 National Library 69 7 43 7 66 NZ Food Safety Authority 45 4 41 2 25 Pacific Island Affairs 56 3 67 18 Prime Minister & Cabinet 55 6 38 1 Research, Science & Technology 64 3 42 1 Serious Fraud Office 46 4 12 Social Development 73 24 57 5 64 State Services Commission 64 12 38 1 Statistics New Zealand 55 7 5 8 41 Transport 53 1 45 4 67 Treasury 49 5 9 5 Women's Affairs 83 6 5 6 49 Public Service Total 59 16.4 39.8 7 55 1 2 3 4 Percentages are calculated based on public servants with known gender. Percentages are calculated based on public servants with known ethnicity. Senior management refers to Tier 1 (CE), 2 and 3 managers. Includes expired collective agreements.

Appendix 3: Occupations in the HRC Customised Occupation Groups HRC Customised Reporting Group Description Common Occupations Managers 1 All managers in the Public Service. Chief Executive Office Manager Policy and Planning Manager Corporate Services Manager Finance Manager ICT Manager Policy Analysts Information Professionals Social, Health and Education Workers ICT Professionals and Technicians Legal, Human Resources and Finance Professionals Other Professionals not elsewhere included 2 Inspectors and Regulatory Officers Contact Centre Workers Clerical and Administrative Workers The code Policy Analyst is also used for employees in advisory roles. 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. Policy Analyst Advisor 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) 1 2 This group includes communications managers. This group includes communications staff in non-management roles.

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. As at 3 21 there were 35 Public Service departments. Full Time Equivalent (FTE) Each employee is assigned a FTE value between 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 6 percent of full time hours equals.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.

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. 28