The Department is committed to individual and organisational excellence. We recognise the essential contribution that people make to achieving departmental purposes, and the importance of investing in staff capability.

Throughout 2016–17, the Department improved how it supports its staff and culture and develops its capabilities. The Department's transformation agenda sets the framework to create a Department that is adaptive, creative and equipped to meet the evolving needs of Australian society.

Achievements this year include refreshing HR Help to deliver integrated HR services, the creation of an Indigenous HR Team, reviewing processes to better attract, employ, retain and develop Aboriginal and Torres Strait Islander people and streamline the Wellbeing Integration Project to prioritise the safety and wellbeing of staff.

Employment performance

As at 30 June 2017, the Department had 2,276 employees engaged in ongoing functions. This is an increase from 2,141 employees as at 30 June 2016 (see Figure 3.2).

The Department's workforce is 66 per cent female, 59 per cent under 45 years old and 16 per cent identify as Aboriginal or Torres Strait Islander.

PM&C has staff working across Australia with 29 per cent of staff located outside Canberra in other capital cities and regional and remote areas. Further information is provided in the human resources workforce profile at Figure 3.3.

Inclusion and diversity

The Department is committed to being a leader in diversity and inclusion across the Australian public sector. We actively build a diverse and inclusive workplace that promotes gender equality and harnesses the skills and experiences of people from all backgrounds. The Department prioritises diversity and inclusion because everyone has the right to feel valued, safe and included at work. Diversity is a proven strength of high-performing teams and organisations.

The Secretary chairs the Secretaries Equality and Diversity Council and is an active member of the Leadership Council on Cultural Diversity and the Male Champion of Change initiative.

Diversity and inclusion initiatives are led by a Deputy Secretary Diversity Champion who is supported by five SES champions:

• Gender Champion
• Indigenous Champion
• Disability Champion
• Lesbian, Gay, Bisexual, Transgender and Intersex (LGBTI) Champion
• Culturally and Linguistically Diverse Champion.

The Department has staff networks for each of its five diversity groups. The staff networks support and celebrate difference and foster ideas for valuing diversity and optimising inclusion. In 2016, the Department established the Inclusion and Diversity Committee (IDC) as a dedicated mechanism to identify and promote inclusion and diversity initiatives and change within the Department. The IDC is chaired by the Secretary and membership includes the Executive Board, Diversity Champions, executive-level representatives from diverse backgrounds and two external representatives.

In 2017, the Department developed and published the PM&C Gender Equality Action Plan 2016–19. The plan outlines initiatives designed to break down barriers to attracting, promoting and retaining women and people from diverse backgrounds, cultures and experiences. These initiatives bring benefits to all staff.

Aboriginal and Torres Strait Islander peoples

We respect and celebrate the unique place Aboriginal and Torres Strait Islander peoples hold as our First Peoples. The Reconciliation Action Plan 2015–18 (RAP) sets out the Department's journey to reconciliation. While the current RAP is an 'Innovate' RAP, our vision is to achieve an 'Elevate' RAP by 2020; Reconciliation Australia's highest award. Elevate RAP organisations are among an elite group, leading reconciliation in their sector.

A number of executive-level employees commenced the Department's Indigenous Talent Management Program Pilot in May 2017. The program focuses on career development and creating effective leaders.

The Department held the first National Aboriginal and Torres Strait Islander Employee Conference in Canberra in June 2017. Conference attendees had opportunities to network and hear from SES Aboriginal and Torres Strait Islander peoples employees. Attendees worked collectively to contribute improvements that the Department might make in matters affecting Aboriginal and Torres Strait Islander peoples.

Domestic and family violence policy

The Department has implemented a number of workplace initiatives designed to assist staff affected by domestic and family violence. We worked towards White Ribbon Workplace Accreditation and the Secretary was appointed as a White Ribbon Ambassador. Through the Secretary's leadership as a Male Champion of Change, the Department plays a leadership role in the Domestic and Family Violence Action Group. We worked with state and territory governments to share knowledge and resources about employer responses to domestic and family violence.

Recruitment

The Department offers a range of entry-level programs for prospective employees. In 2016–17, the Department ran six specialist recruitment programs:

• The two-year PM&C Graduate Program had a total of 51 participants; 24 in the 2016 cohort (including one participant recruited through the APS Indigenous Pathways Graduate Programme) and 27 in the 2017 cohort.
• The Indigenous Australian Government Development Programme had four participants.
• The Indigenous Apprenticeship Programme had five participants.
• The Australian Government ICT Graduate Programme had one participant.
• The PM&C Vacation Employment Programme had six university participants.
• The Career Starter Programme had two participants.

Employment arrangements

In late June 2017, employees voted in a new enterprise agreement. A total of 81 per cent of eligible employees participated in the vote, with 78 per cent of those voting 'yes' to the agreement. The PM&C Enterprise Agreement 2017–2020 will replace the terms and conditions of the PM&C Enterprise Agreement 2011–14 and the nine agreements, preserved from the 2013 machinery of government changes. Data on employment arrangements for all departmental staff is provided at Figure 3.4.

Consistent with their enterprise agreement, eligible employees received pay point progression at the end of financial year. Data on base salary is available in Figure 3.5.

Total employee expenditure for 2016–17 was $251.4 million, a decrease of $18.4 million from the previous year.

Performance pay and other benefits

Employees may access a range of salary sacrifice benefits including additional superannuation and leased motor vehicles. In 2016–17, three employees received performance bonuses under Individual Flexibility Arrangements as part of their enterprise agreement. To avoid disclosing personal information bonus figures have not been published.

Performance management framework

During the year, the Department supported supervisors to improve the performance of their teams to achieve departmental outcomes. This resulted in improved performance conversations throughout the year. The Department developed and implemented a Senior Executive Service Performance Framework providing a holistic approach to performance, remuneration and mobility.

Learning and development

In 2016–17, the Department delivered 186 face-to-face learning sessions to employees Australia-wide, based around the core themes of critical thinking, design thinking, writing skills, management capability and fostering high performance. Priority skills training comprising fostering innovation, diversity and inclusion, working smarter and domestic violence training for managers were also offered.

Leadership development across all staff levels remained a focus during 2016–17. Employees were encouraged to access formal and experiential leadership development opportunities such as APS development programs, seminars and conferences, mobility placements, high-profile scholarships and coaching and mentoring partnerships. Employees identified as high-performing and high-potential were offered specialised leadership and talent development opportunities.

In 2016–17, the Department provided interactive, accessible and self-paced digital learning covering induction, compliance, leadership, management and training in the use of business information technology applications.

The Department's Coaching Service was refreshed and provided tailored one-to-one professional advice to over 100 employees.

The Department's study assistance scheme allowed employees to complete relevant tertiary study to improve their professional skills and knowledge. In 2016–17, 257 employees received study assistance via paid study leave and financial assistance to undertake tertiary education.

Work health and safety

Initiatives and outcomes

The Department maintains a strong commitment to the health and wellbeing of all employees and visitors. During the reporting period, the Department undertook initiatives ensuring the health, safety and welfare of workers and achieved some good health and safety outcomes as a result. An audit by Comcare into the Department's Work Health and Safety Management System provided some corrective actions, in particular, new procedures to address specific safety risks. The Department is also improving aspects related to remote and isolated work environments.

The Department received a commendation for 'Recover and Return to work' in September 2016 recognising the implementation of the rehabilitation management system. The system encourages early engagement with employees and supervisors to ensure a return to the workplace as soon as possible that is safe and durable. As a result, the Department has seen a reduction in future compensation liabilities with accepted claims reduced by 50 per cent from the 2015–16 financial year.

During the reporting period, seven incidents required notification to the Regulator with respect to the Department's statutory obligation under section 38 of the Work Health and Safety Act 2011. These included six incidents of a serious injury or illness and one of a dangerous incident. There were two investigations initiated by employees and one initiated by Comcare. Due to the Department's response and systems in place to address concerns, no notices were issued in regard to these matters.

There were no matters as required by guidelines approved on behalf of the Parliament by the Joint Committee of Public Accounts and Audit.