Introduction

The framework sets a consistent basis for classifying executive positions in public entities into one of three bands, based on work value factors.

The Victorian Public Entity Executive Classification Framework (PEECF) guides consistency in executive classification across Victoria’s public entities, improving executive mobility and attraction of candidates.

The PEECF classifies the work value of a position based on a combination of factors and is not an assessment of the performance, strengths and/or specific expertise that an incumbent might bring to a position.

The PEECF has been adapted from the Victorian Public Service (VPS) Executive Classification Framework which is currently being implemented in VPS departments and their connected service agencies.

The PEECF has informed the Victorian Independent Remuneration Tribunal’s Determination of public entity executive remuneration.

If you’d like to know more, see our factsheet on the implementation of the PEECF.

Key elements

The key elements of the PEECF include:

• the introduction of a three-tier public entity executive classification band structure, where Public Entity Senior Executive Service Band 1 (PESES-1) is the lowest band and Public Entity Senior Executive Service Band 3 (PESES-3) is the highest band;
• alignment of the new PESES bands with the VPS Senior Executive Service (SES) bands, where SES-1 (currently EO3) is the lowest classification and SES-3 (currently EO1) is the highest classification, thus supporting greater mobility between the service and the sector and with other jurisdictions, and improving the sector’s ability to attract and retain high performing executives;
• a methodology for evaluating the degree of complexity and responsibility associated with a position to support an assessment of where that position sits in the new PESES band structure; and
• acknowledgement of the diversity of public entity Chief Executive Officers (or equivalent positions) in the classification approach.

Acknowledging the diverse nature of public entities, it is not proposed to include a provision for standard position titles.

Classification methodology

The PEECF uses a methodology where positions are assessed and scored against eight work value factors which reflect the range of competencies and accountabilities with which executives working in the public sector are typically engaged.

Each position is allocated a point score on a scale of 1 to 7 for each factor, where scores increase in relation to the associated increase in complexity and responsibilities, with a clear differentiation in scoring rationale across the three bands.

The accumulated scores for the eight factors reflect the overall work value for the position and determines in which of the three PESES bands the position sits.

The eight work value factors are:

1. knowledge;
2. relationships;
3. judgement and risk;
4. independence;
5. strategic change;
6. breadth;
7. impact; and
8. resource management.