The Premier has determined that the evaluation of senior executive positions in the Level 4 to Level 8 range (except for Chief Executive Officer positions) will be devolved to public sector agencies. This accords with advice provided in Circulars 97-36 and 99-21 which indicated that further stages of devolution of the evaluation of SES positions were under consideration.

Circular 97-36 advised agencies of the Premier's delegation authorising them to evaluate SES positions from Levels 1 to 3 using the Mercer Cullen Egan Dell job evaluation methodology. Circular 99-21 provided Department Heads with increased flexibility by endorsing the use of a further two job evaluation methodologies - OCR and Hay - for positions in the Level 1-3 range.

This final stage of devolution recognises that Chief Executives need to develop management structures that are flexible and responsive to Government and agency priorities. At the same time, the Public Sector Management Office requires the capacity to ensure that the Government's commitment to a streamlined Senior Executive Service is met. The PSMO is also required to maintain an accurate SES database so that the Premier and Government can be provided with information on SES numbers and levels, and so that Schedule 3B of the Public Sector Management Act, listing the composition of the SES, can be regularly updated as per statutory requirements.

So that these objectives can be successfully achieved, it is particularly important that the procedures outlined in the attached operating framework are strictly adhered to. In exceptional circumstances the delegation to agencies to evaluate SES positions may be withdrawn at any time, both on an individual case or agency basis, or across the sector generally, depending on particular circumstances.

This policy is effective from the date of this Circular and applies to all agencies whose senior executives are members of the executive services under Part 2A of the Public Sector Management Act.

The evaluation of CEO positions will still be undertaken by the PSMO.

Inquiries concerning the SES job evaluation devolution framework, notional SES establishment numbers, SES job evaluation methodology training, evaluation difficulties or other associated matters can be directed to the Public Sector Management Office on (02) 9228-5510.

C. Gellatly
Director-General

Attachment

OPERATING FRAMEWORK

Stage 3 - Devolution of Evaluation of Senior Executive Positions Levels 4 - 8.

Purpose
The Premier has devolved the evaluation of senior executive positions in the Level 4-8 range (except Chief Executive Officer positions) to public sector agencies. The function of approving the classification and grading of these positions has been delegated (pursuant to S96A of the Public Sector Management Act) to Department Heads and Chief Executive Officers of all public sector agencies whose senior positions are included in the executive services under Part 2A of the PSM Act. A copy of the Instrument of Delegation is attached.

This final phase in the devolution of SES job evaluation gives Department Heads and CEOs enhanced flexibility and autonomy in executive staffing issues enabling them to be more responsive to Government and agency priorities.

Approved SES Job Evaluation Methodologies
Consistent with Stage 2 of devolution which was covered in Circular 99-21, SES positions in the Level 4-8 range may now be evaluated using any one of three job evaluation methodologies - Cullen Egan Dell, OCR or Hay - provided that the officers undertaking such evaluations are accredited in the chosen methodology. The following combined points to grade table has been developed for the three methodologies covering all eight SES levels:

  CED OCR Hay
_____________________________________________________
 
SES Level 1 670-749 780-900 731-870 
SES Level 2 750-849 901-1045 871-1050 
SES Level 3 850-989 1046-1250 1051-1240 
SES Level 4 990-1164 1251-1540 1241-1390 
SES Level 5 1165-1474 1541-1850 1391-1650 
SES Level 6 1475-1999 1851-2160 1651-2150 
SES Level 7 2000-2549 2161-2475 2151-2800 
SES Level 8 2550-3550 2476-2830 2801-3680
_____________________________________________________ 

Agencies wishing to have staff trained and accredited in any of these methodologies can contact the providers as follows:

• Cullen Egan Dell - telephone (02) 9375-9800
• OCR - telephone (02) 9375-9800
• Hay - telephone (02) 9922-5700

As has been the case for some time, each of these providers can evaluate positions for agencies on a fee for service basis, and this option may suit agencies where the necessity to undertake such evaluations is less frequent. The providers can also be contacted on the above telephone numbers in relation to this service.

Costs associated with staff training or engaging any of the providers to undertake evaluations must be met from agencies' existing budgets.

Training in job evaluation should be updated at least every two years.

Process Integrity and Documentation
CEOs will be accountable for implementation of the devolved evaluation policy and will need to establish appropriate operating procedures and policies. The Independent Commission Against Corruption's November 1996 'Report on the Public Employment Office Evaluation of the Position of Director-General, Department of Community Services' (particularly pages 117-122) is a very useful reference document in this regard.

The approach to SES job evaluation must be ethical, sound, unbiased, equitable, and open to scrutiny.

Documentation and issues which should be considered in the conduct of a job evaluation would normally include, but would not be limited to, an up-to-date position description, agency vision, objectives and structure, and environment issues which might impact on the position. The position description should clearly define the role, accountabilities, reporting relationships, position dimensions and challenges.

Evaluation should be carried out by a panel comprising at least two trained evaluators and other suitably qualified officers. The involvement of a senior officer with detailed knowledge of the position's role can provide valuable insights. It is highly recommended that independent evaluators from other public sector agencies trained in the same job evaluation methodology be considered for inclusion in panels to enhance the integrity of the process and provide a broader perspective.

Whether evaluations are undertaken by trained agency evaluators or by one of the methodology providers, agencies should ensure that as a minimum, documentation in relation to the following is maintained according to the Archives Authority's records disposal schedules:

• Title of the position/s evaluated and information relied on in determining SES level/s.
• The name of each person who conducted the evaluation/s and the evaluation date.
• The coordinates or point scores for each evaluation together with written rationale for awarding the factors.
• Any other information or decisions relating to the evaluation and classification.
• A current up to date position description upon which the evaluation was based.

Accountability for ensuring that application of the methodology, documentation and outcomes withstand scrutiny and meet appropriate standards of accuracy, equity, fairness and probity rests with Department Heads and CEOs, and external auditing can be expected in this regard.

Public Sector Management Office's Role
The PSMO of Premier's Department will no longer be available to undertake evaluations of SES or Senior Officer positions but may be able to provide independent evaluators to participate in evaluation panels from time to time.

Although no longer undertaking SES job evaluations on behalf of agencies, the PSMO will continue to play a central role in respect of SES matters in the following ways:

• Policy Development - the PSMO will continue to be responsible for the development of policy in relation to all matters associated with the Chief and Senior Executive Service.
• CEO Job Evaluation and Recruitment - the PSMO will retain all functions associated with the evaluation of, recruitment for, and machinery of government in relation to Department Head and CEO positions, regardless of their SES Level.
• Approving SES Notional Profiles - consistent with this Operating Framework, CEOs may create and delete SES positions from Levels 1-8 (except for CEO positions) provided there is no net increase in the approved notional number of SES positions within their agency. Increases beyond existing numbers must be approved by the Director-General, Premier's Department. Agencies can check their current notional SES establishment limit by contacting the PSMO. Within approved notional SES establishments there is flexibility to vary the levels of existing positions. CEOs are reminded that the Regulations under the Annual Reports Acts require departments and authorities to report in their annual reports on the number and level of SES positions (see Premier's Department Circular 92-4 for details).
• Maintenance of SES Database - the PSMO reports to the Premier in relation to the Government's commitment to maintaining a streamlined SES. To facilitate this, the PSMO maintains a very detailed SES database. The accuracy of the information provided to the Premier relies on this database being kept up to date. The necessity for the database to be accurate is also important so that the current sector wide establishment of Chief and Senior Executive positions can be accurately reflected in Schedules 3A and 3B of the Public Sector Management Act. The PSMO is responsible for updating these Schedules. The accuracy of these Schedules is relied upon when the PSMO checks Executive Council Minutes relating to SES appointment matters before they are sent to the Governor for approval. SES positions do not legally exist if they are not included in Schedule 3B.

Agencies' Role
Apart from undertaking SES evaluations, or having these done by one of the three methodology providers, and maintaining appropriate documentation, agencies must ensure that a completed Chief and Senior Executive Service Database Profile form is forwarded to the PSMO whenever:

• A position is created
• A position title changes
• A position level changes
• A position is deleted
• The incumbent in a position changes

Further information about SES job evaluation, the database and a copy of the Chief and Senior Executive Service Database Profile form is available in the SES Guidelines (2.1 Classification of positions, 2.2 Database Updates) which can be accessed through the Premier's Department Web site at http://www.dpc.nsw.gov.au

All Executive Council Minutes dealing with SES appointments are checked against the SES Database prior to dispatch to the Governor's Office. Where a Chief and Senior Executive Service Database Profile form is not included with the Executive Council Minute agencies will experience a delay until the required information is provided. It is therefore imperative for agencies to provide Profile forms when submitting such Executive Council Minutes.

Statutory authorities whose SES appointments are approved by a board rather than the Governor should ensure that a Chief and Senior Executive Service Database Profile form is still submitted to the PSMO in any of the five situations mentioned above.

Agencies are reminded that where the re-evaluation of an existing SES position results in a decrease in its work value an option may be to maintain the current remuneration for the balance of the current incumbent's contract. Conversely, where re-evaluation results in a position attaining work value sufficient for an increase in its SES Level then the position should be advertised, unless an exemption is provided by the Director-General, Premier's Department.

Please contact your agency's contact officer in the Strategic Policy & Reform Division of the Public Sector Management Office for assistance or clarification.

INSTRUMENT OF DELEGATION UNDER THE PUBLIC SECTOR MANAGEMENT ACT.

I, Bob Carr, Premier 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 (other than chief executive positions) which are within his or her Department and are within the ranges Level 4 to Level 8.

This delegation in relation to each Department Head is also subject to a Department Head complying with the Premier's Department Circular entitled 'Stage 3 - Devolution of Evaluation of Senior Executive Positions Levels 4 - 8', 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 9th day of July 1999.