The Premier has determined that sizing of senior executive positions in the range Band 1 Lower to Band 2 Lower will be devolved to public sector agencies. To facilitate this policy change the Premier has delegated¹ (pursuant to section 96A of the Public Sector Management Act) to Department Heads, his function under section 8 (3) (a) of the Act, to approve the classification and grading of positions.

It is intended that the devolution arrangements apply to all agencies whose senior executives are members of the executive services under Part 2A of the Act.

Initially, as is the case at the moment in terms of evaluations conducted by Premier's Department, classification will be based on work value determined by officers, trained by Sedgwick Noble Lowndes Cullen Egan Dell and using CED job evaluation methodology only. Agencies are still able to use the services of the Public Sector Management Office, Premier's Department, for evaluation of positions if required.

Further stages of devolution are under consideration, with the intention that Department Heads will progressively have increased flexibility to use any one of a range of benchmarked methodologies in a way which best suits the circumstances of the individual agency.

In all stages, the total number of SES positions within agencies will be as agreed with Premier's Department, but within that number there will be the flexibility to vary the levels up to Band 2 Lower.

The operating framework for the first stage of devolution is attached. The policy is effective from the date of the circular. Department Heads' authority to classify and grade the positions is to be exercised in accordance with guidelines issued by Premier's Department. Accountability for ensuring that application of the methodology, the documentation and the results stand up to scrutiny and meet appropriate standards of accuracy, equity, fairness and probity, rests with Department Heads.

Recruitment to positions classified within agencies will continue to be in accordance with policies and procedures approved by Premier's Department.

Requests for assistance or enquiries concerning the framework, SES target numbers, CED methodology and training, classification difficulties or any other devolution matters, may be directed to the Public Sector Management Office on (02) 9228 5510 or (02) 9228 5393.

C. Gellatly
Director-General

Attachment

OPERATING FRAMEWORK

Devolution of sizing of Senior Executive Positions within the range Band 1 Lower to Band 2 Lower

Purpose

The Premier has devolved the sizing of senior executive positions in the range Band 1 Lower to Band 2 Lower to public sector agencies, The function of approving the classification and grading of these positions has been delegated (pursuant to S96A PSM Act) to Department Heads and Chief Executive Officers of all other public sector agencies whose senior positions are included in the executive services under Part 2A of the PSM Act.

These actionswill provide Department Heads and CEOs with more flexibility and autonomy in executive staffing matters. This is in line with the Government's recognition ofthe challenges being met by Department Heads and CEOs and their need for tools to achieve these within a framework of rigorous accountability.

This devolved authority to classify and grade SES Band 1L to Band 2L positions is subject to the following operating framework and other guidelines issued by Premier's Department from time to time.

Background

As you would be aware, all senior executive positions are currently 'sized' by Premier's Department using Cullen Egan Dell job evaluation methodology, The Director-General, Premier's Department then approves the creation of the position by an agency head at the appropriate level.

New arrangements

The classification and grading of these positions will be based upon work value as sized using Cullen Egan Dell job evaluation methodology.

CEOs are accountable for implementation of the devolved sizing policy and will need to establish appropriate operating procedures and policies to meet framework requirements. A useful reference document would be the Independent Commission Against Corruption 'Report on the Public Employment Office Evaluation of the Position of the Director-General Department of Community Services.' The relevant issues raised by the Report have largely been covered below.

Job classification should not be undertaken in isolation, but rather be undertaken with caution and consideration of the need for balance in a broader context including internal, job equity, cross-sector job equity, government priorities, functions, structure. personnel and budget.

The following points are listed in alphabetical order for easy reference:

As a minimum documentation should include the following:

• title of the position evaluated and information relied on in determining the level;
• the name of each officer an evaluation and the evaluation date;
• point scores for each evaluation with the rationale for awarding the factors; and
• any decisions relating to the evaluation and classification.

  EXPENDITURE:

  The costs associated with this change in policy must be met within existing budgets.

  GAZETTAL OF SES BAND 1 LOWER to BAND 2 LOWER POSITIONS:

  The creation (or deletion) of a position as an SES position (as distinct from its appropriate level) occurs when it is included in (or omitted from) Schedule 3B to the Act through proclamation by the Governor -in-Council, on the recommendation of the Premier. Otherwise it may be considered that the position does not legally exist.The Strategic Policy and Reform Division, Premier's Department will continue to arrange for the proclamation and gazettal of ALL SES positions at this stage. Consequently, agencies are requested to advise SPR Division of any changes to SES Band 1L to 2L positions as quickly as possible.

  MONITORING AND AUDIT:

  Information on positions in the range Band 1 Lower to Band 2 Lower will be sought by the Public Sector Management Office, Premier's Department on a six-monthly basis. This will include details on position levels, titles, holders, evaluation data and approval dates. A proforma will be provided.

  Agencies are responsible for internal monitoring of the evaluation process and results and external auditing can also he expected.

  PROCESS INTEGRITY:

  Approach to classification must be ethical, sound, unbiased, equitable, and open to scrutiny.

  All documentation should be checked and signed by an appropriate officer prior to commencing the assessment. The involvement of a senior officer with detailed knowledge of the role, may provide valuable insights. Evaluation may be carried out by a panel comprising at least two trained evaluators and other suitably qualified officers. The inclusion of independent evaluators from other public sector agencies will enhance the integrity of the process and provide a broader point of view.

  An alternative to panel evaluation is for the assessment to be carried out by two trained evaluators: a primary evaluator and a seconder.

  Differences in opinions in both cases should be fully debated and if consensus cannot be reached, further investigation and clarification of the role may be necessary. These details should be included in the documentation of the decision making process.

  REMUNERATION:

  The minimum and maximum salaries within the SES bands are set by the Statutory and Other Offices Remuneration Tribunal. (Refer to Premier's Department Circulars).

  SIZING:

  A decision as to a position's band and range must be determined on the basis of work value as assessed by trained evaluators using CED methodology.

  An up to date position description, agency vision, objectives and structure, environment and any other issues which might impact on the position, should be considered during position evaluation. The position description should clearly define the role, accountabilities, reporting relationships, position dimensions and challenges.

  CED methodology measures the work value of the position, not the position holder. An increase in the level of an SES position should reflect an increase in job value rather than a desire to increase remuneration to match market value or to reward a particular offcer's performance.

  The Cullen Egan Dell job evaluation manual provides guidelines, checks and balances all of which are necessary for the evaluation process. These are to be used in conjunction with Premier's Department guidelines (including those which may be issued from time to time).

  TRAINING:

  Training in job evaluation by Sedgwick Noble Lowndes Cullen Egan Dell (CED) should be updated at least every two years.

  Please contact officers of the Public Sector Management Office, Premier's Department on 9228 5510 for assistance or clarification.

  24 June 1997

  INSTRUMENT OF DELEGATION UNDER THE PUBLIC SECTOR MANAGEMENT ACT

  I, Bob Carr, Premier of the State of New South Wales, pursuant to section 96A of the Public Sector Management Act 1988, delegate to Department Heads my function under section 8 (3) (a) of the Public Sector Management Act 1988 with respect to the granting of approval to the classification and grading of senior executive positions. The delegation under this instrument in respect of each Department Head is limited to senior executive positions which are within his or her Department and are within the ranges Band 1 Lower to Band 2 Lower.

  This delegation in relation to each Department Head is also subject to a Department Head complying with the Premier's Department Circular entitled 'revolution of Sizing of Senior Executive Positions within the Range Band 1 Lower to Band 2 Lower' (including the 'operating framework' attached to the Circular), issued in June 1997, together with any other guidelines which may be issued from time to time by the Premier's Department in substitution for or in addition to that Circular.

  Dated this 24 Day of June 1997.

  Bob Carr
  Premier