Among the changes to public sector culture brought about by the creation of the SES, the advertising of the remuneration attracted by individual positions as a total cost to the employer is one which provides immediate opportunities for extension to positions below SES level.

Remuneration shown as a total cost to the employer gives a more accurate indication of the total compensation paid to employees for the performance of their work. Substantive incumbents of salaried positions in public sector agencies are paid a salary and leave loading, and the employer pays directly to the appropriate fund a significant contribution to the employee's superannuation.

The public sector's approach until the creation of the SES was simply to show the salary attracted by the position advertised. This means, in the case of positions below the SES, a discount of approximately 15% from the actual total pay for public sector positions. Such an approach can have the effect of discouraging potential outside applicants who see public sector salaries below SES as not attractive or competitive. If press advertisements show all components of the total remuneration paid as a total, the number and quality of outside applicants to public sector positions may grow considerably.

Similarly, although this new approach is mainly intended for the advertising of positions in the press, people currently employed in public sector agencies who are aware of the total compensation they are paid for the performance of their duties, will be able to make a more realistic comparison between their current work and career prospects and employment in the private sector. Such awareness may result in talented and experienced employees staying in the public sector rather than leaving for positions in private enterprise.

Chief Executive Officers should therefore advertise all positions below the SES showing a total remuneration package which includes salary, employer's contribution to superannuation and leave loading.

Remuneration packages for positions below the SES will not be flexible, that is, the person employed would be required to take the remuneration package components as they are provided at present. They would not have the option, for instance, of having more cash salary instead of superannuation. Contact officers, when dealing with prospective applicants, would have to explain the package components and the above requirement.

The average value of the superannuation and leave loading components is approximately 15%, therefore, advertisements should show a total remuneration package which includes the maximum salary f or the position plus 15%, e. 9. a grade 5-6 A And C position with a maximum salary of $34,912 p.a. would be advertised offering a remuneration package of up to $40, 148 p.a. as in the example below.

STAFF DEVELOPMENT OFFICER, Clerk Grade 5-6, Corporate Services Division. Position No. 90/15. Total remuneration package valued at up to $40,148, including salary, employer's contribution to superannuation and leave loading. Responsible to.... etc.

It should be noted that the average of 15% for superannuation would not necessarily apply to internal applicants who are members of the State Superannuation Fund. No change would be made to their superannuation arrangements.

Commencing salary rates would continue to be based upon the salary scales appropriate to the grading of the positions and the qualifications and experience of the recommended applicants, i.e. the change in advertising to total remuneration packages does not change or affect the way selection committees make their recommendations regarding commencing rates of pay.

For any further inquiries regarding this matter please contact the Personnel Policy Division on 228-5512.

RG Humphrey
Director-General